The owner of shop is contemplating adding a new product, Operation Management

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The owner of shop is contemplating adding a new product

The owner of shop is contemplating adding a new product, which will require additional monthly payment of Rs.6000. variable costs would be Rs.2.00 per new product, and its selling price Rs.7.00 each.

a. How many new products must be sold in order to break even?

b. What would the profit (loss) be if 1000 units were sold in a month?

c. How many units must be sold to realize a profit of Rs.4000?

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