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Bazooka Company Is Thinking About Introducing a New Type of Color

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Essay

Bazooka Company is thinking about introducing a new type of color printer. If they introduce it, their factory will incur additional fixed costs of $37,000,000 per year. The variable costs will be $261 per printer.
a) If Bazooka sells the new printer for $819, how many must they sell to break even?
b) If Bazooka sells 70,000 of the new printer at the $819 price, what will the contribution to profit be?

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Definitions:

Leisure Hours

Free time spent away from any business, work, domestic chores, or education, often used for relaxation, entertainment, or hobbies.

American

Pertaining to the United States of America or its inhabitants.

Spectatorship

The act of observing or watching an event, artwork, or performance as a spectator, often engaging with visual and auditory senses.

Commercialization

The process of developing or transforming goods, services, ideas, or events to be marketable to the public for the purpose of generating profit.

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