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How many units need to be sold to average $0.25 profit per unit?
Fixed cost = $2,880
Variable cost = $3
Selling price = $6.6.
Answer:
Let x = number of units
$6.60 (x) = $2880 + $3 (x) + $0.25 (x)
$6.60x = $2880 + $3.25x
$3.35x = $2880
x = 860 units (rounded, units must be of course a whole number).
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