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Business, 10.03.2020 02:47 maddietomlinson113

You are a magazine publisher. You are midway through a one-year rental contract for your factory that requires you to pay $ 600 comma 000 per month, and you have contractual labor obligations of $ 1 comma 500 comma 000 per month that you can't get out of. You also have a marginal printing cost of $$ 1.75 per magazine as well as a marginal delivery cost of $$ 1.00 per magazine. Suppose sales fall by 25 percent from 1 comma 500 comma 000 magazines per month to 1 comma 125 comma 000 magazines per month. What is your profit scenario?

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