Kirkland Video Games Inc. is developing a new video game. It is the most sophisticated...
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Kirkland Video Games Inc. is developing a new video game. It is the most sophisticated game on the market. It sells the video game for $285 per copy. Variable costs to produce and sell the video game amount to $80 per copy. Fixed costs amount to $481,750. The company anticipates selling 410 copies of the game per month. The companys policy is to stop producing the video game as soon as a competitor comes out with a more sophisticated version.
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