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Essay text:
With a revenue of $1,800, we would expect our pre-tax profit to be $6,400 based on the cost function created above. The discrepancy could be due to the increased variable or fixed costs associated with storing additional supplies required to sell more goods.
H)
The volatility of the cost of coffee causes the cost function to be volatile too. This is because coffee directly impacts the variable costs, so an increase in the price of coffee increases the variable cost and vice-versa.
Problem 3:
- Este creo que es el que ustedes tienen.
Problem 4:
a) Revenue= 1,050,000
Var. Cost (577,500)
Total CM= 472,500
Fixed Cost (247,500)
Oper...
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