A manufacturer of fancy handkerchiefs invests 1 million in, Operation Management

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A manufacturer of fancy handkerchiefs invests 1 million in

A manufacturer of fancy handkerchiefs invests $1 million in a new facility, and claims that he can obtain 8% return on this investment within one year by selling 90,000 handkerchiefs per month at a $4 price per handkerchief. Under this scenario:

a. What is the unit margin?

b. What is the variable cost involved in making a handkerchief?

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