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Unicorn Dust Harry is starting a new business of selling unicorn dust and trying to decide what price he should charge for a bag of the same. His fixed cost includes monthly expense of $500 and variable cost per bag of unicorn dust is $1.95. Scenario Labour Cost Material Cost High labour cost/high material cost $80 $140 Medium labour cost/medium material cost $60 $110 Low labour cost/low material cost $40 $903
a. Help Harry to evaluate his profit at various price levels ($3 to $4.25) and various quantities of sales (ranging from 100 to 700 bags per month).
b. How does profit vary if fixed costs vary from $200 to $600?
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