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Question
Texas Products Inc. has a division which makes burlap bags for the citrus industry. The unit has operating fixed costs of $10,000 per month, and it expects to sell 42,000 bags per month. If the variable cost per bag is $2.00, what price must the division charge in order to break even?
a. $2.24
b. $2.47
c. $2.82
d. $3.15
e. $2.00
Answer
This answer is hidden. It contains 76 characters.
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