Homework Answers
(a) Total cost = variable cost + fixed cost
= 30*units + 383548 + 100000 + 100000
= 30*units + 583548
Total revenue = price*units = 85*units
profits = revenue - costs
=> 120000 = 85*units - 30*units - 583548
=> 55*units = 703548
=> units = 703548/55 = 12791.7 = 12792 units
Thus, answer = 12792 units
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