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Question: Tasty Ice Cream is a year-round take-out ice cream restaurant that is considering offering an additional product, hot chocolate. Considering the additional machine it would need plus cups and ingredients, it estimates fixed costs to be $201 per year and the variable cost to be $0.24. If it charges $1.09 for each hot chocolate, how many hot chocolates does it need to sell in order to break even?

Operation Management, Management Studies

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