Levels of demand and probabilities

by | Sep 4, 2021 | Assignment Help

PL currently earns an annual contribution of $2,880,000 from the sale of 90,000 units of product B. Fixed costs are $800,000 per annum. The estimated variable costs per unit at either of the higher levels of demand and the probabilities of them occurring are as follows:Variable cost (per unit)              probability       $21                                          0.25       $19                                          0.75Calculate

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