Augusta LLC has a plant capacity that can produce

by | Mar 18, 2020 | Uncategorized

  

Augusta LLC has a plant capacity that can produce 4,000 units annually. Its predicted operations for the year are as follows:

Sales (1,000 units at $75 each)

$75,000

Manufacturing costs:

Variable

$30 per unit

Fixed

$40,000

Marketing and administrative costs:

Variable

$8 per unit

Fixed

$20,000

What is the current operating profit? Please show the work.

  

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