How much can Tulip afford to spend on variable cost per unit if production and sales equal 46,000 phones
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The marketing manager of Tulip Corporation has determined that a market exists for a telephone with a sales price of Rs. 19 per unit. The production manager estimates the annual fixed costs of producing between 40,000 and 80,000 telephones would be Rs. 344,000.
Required: Assume that Tulip desires to earn a Rs. 116,000 profit from the phone sales. How much can Tulip afford to spend on variable cost per unit if production and sales equal 46,000 phones?
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