Illustrate what will be the contribution to profit

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Q. Mop also Broom Manufacturing is evaluating whether to produce a new type of mop. The organization is considering the operations requirements for the mop as well as the market potential. Estimates of fixed prices per yr are $40,000 also the variable price for each mop produced is $20.

If the organization sells 10,000 mops at the product price of $25, illustrate what will be the contribution to profit?

 

 

Reference no: EM1375373

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