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Break-Even Analysis—Organized Crime The organized crime boss and perfume k...

Break-Even Analysis—Organized Crime The organized crime boss and perfume king Butch (Stinky) Rose has daily overheads (bribes to corrupt officials, motel photographers, wages for hit men, explosives, and so on) amounting to $20,000 per day. On the other hand, he has a substantial income from his counterfeit perfume racket: He buys imitation French perfume (Chanel No= 22.5) at $20 per gram, pays an additional $30 per 100 grams for transportation, and sells it via his street thugs for $600 per gram. Specify Stinky’s profit function, P(x), where x is the quantity (in grams) of perfume he buys and sells, and use your answer to calculate how much perfume should pass through his hands per day in order that he break even.

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