Omar Corporation manufactures faucets. The variable costs of production are $37 per faucet. Fixed costs of production are $876,000. Omar sells the faucets for a price of $61 per unit. Required a. How many faucets must Omar make and sell to break even? b. How many faucets must Omar make and sell to earn a $225,000 profit? c. The marketing manager believes that sales would increase dramatically if the price were reduced to $57 per unit. How many faucets must Omar make and sell to earn a $225,000 profit, assuming the sales price is set at $57 per unit?
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