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1. Hambry's president has a goal of $1 million profit next year at each plant with no revenue or fixed cost increases. Determine the decreases (dollar amounts and percentages) in variable cost necessary to meet this goal if the number of units sold is the same as this year.
2. Use Excel and the original cost data for the U.S. plant to plot the sensitivity of the breakeven point to revenue changes that range from 20% below to 30% above the $12,500 value.
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Write the system in matrix form and solve for the equilibrium prices and quantities.
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