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Tech engineering inc. makes a consumer product for which the following cost data are available.
Fixed cost/year = $120,000
Variable costs/ Unit = $ 15
i. Determine the breakeven volume unit can be sold for $40.
ii. If a net profit of $100,000 is required determine the number of units that needed to be sold.
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Illustrate that there are any extra costs or benefits due to this shift.
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When the price of one good decrease, the associated substitution effect is represented by a:
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