What is the variable cost involved in making handkerchief

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A manufacturer of fancy handkerchiefs invests $1 million in a new facility, and claims that he can obtain 8% return on this investment within one year by selling 90,000 handkerchiefs per month at a $4 price per handkerchief. Under this scenario:

a. What is the unit margin?  

b. What is the variable cost involved in making a handkerchief?   

Reference no: EM13856805

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