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The marketing manager of Vernon Corporation has determined that a market exists for a telephone...

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Accounting

The marketing manager of Vernon Corporation has determined that a market exists for a telephone with a sales price of $21 per unit. The production manager estimates the annual fixed costs of producing between 41,000 and 80,700 telephones would be $247,000.

Required

Assume that Vernon desires to earn a $125,000 profit from the phone sales. How much can Vernon afford to spend on variable cost per unit if production and sales equal 46,500 phones?

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The marketing manager of Vernon Corporation has determined that a market exists for a telephone with a sales price of $21 per unit. The production manager estimates the annual fixed costs of producing between 41,000 and 80,700 telephones would be $247,000. Required Assume that Vernon desires to earn a $125.000 profit from the phone sales. How much can Vernon afford to spend on variable cost per unit if production and sales equal 46,500 phones

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