Estimates of fixed costs per year are 40000 and the, Ask an Expert

Management Studies

Mop and Broom Manufacturing is evaluating whether to produce a new type of mop. The company is considering the operations requirements for the mop as well as the market potential. Estimates of fixed costs per year are $40,000, and the variable cost for each mop produced is $20.

If the company sells 10,000 mops at the product price of $25, what will be the contribution to profit?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M983071

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