Question

NJM Incorporated is a football manufacturer. NJM has fixed operating costs of $400,000 and variable costs of $12 per football. The footballs sell for $35 each and NJM plans to sell 300,000 footballs this year. What are NJM's total operating costs for the year?

a. $10,900,000

b. $4,000,000

c. $3,600,000

d. $3,200,000

e. $400,000

Answer

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