You are a small retailer. You make profit by buying from a large producer and reselling at yourstore. The price you're selling at does not change with how many units you sell. The producerrecently raised their price to 150 a unit, so you're considering vertical integration and making yourown products. If the fixed cost of vertical integrating is 1,200 and you can produce with a cost of 70per unit, how many units do you have to sell for the vertical integration to yield the same profit asbefore?Enter your answer here

A company develops its operations through vertical integration, a business strategy in which it owns…

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per unit, how many units do you have to sell for the vertical integration to yield the same profit as before?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

You are a small retailer. You make profit by buying from a large producer and reselling at your
store. The price you're selling at does not change with how many units you sell. The producer
recently raised their price to 150 a unit, so you're considering vertical integration and making your
own products. If the fixed cost of vertical integrating is 1,200 and you can produce with a cost of 70
per unit, how many units do you have to sell for the vertical integration to yield the same profit as
before?
Enter your answer here

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