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Question: Clean Energy Resources Inc., a new division of a major battery manufacturing company, recently patented a new battery that uses zinc-air technology. The unit costs for the zinc-air battery are: The battery housing is $25, materials are $9, and direct labor is $17 per unit. The annual fixed costs include: sales, marketing, and advertising expenses of $2 million; general and administrative expenses of $1.5 million; and other fixed costs totaling $1 million. Answer the following questions and show your calculations.

What is the total per-unit variable cost associated with the new battery?

What are the total fixed costs for the new battery?

If the price for the new battery was set at $67, what would the break-even point be?

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Basic Finance, Finance

Category:- Basic Finance
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