Warner Clothing is considering the introduction of a new baseball cap for sales by local...
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Accounting
Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics.
| Sales price | $ | 15 | per unit |
| Variable costs | 3 | per unit | |
| Fixed costs | 42,000 | per month | |
Required:
a. What number must Warner sell per month to break even?
b. What number must Warner sell per month to make an operating profit of $30,000?
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