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Big Oil Refinery Is Losing Money Every Month

Question 110

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Big Oil Refinery is losing money every month. They cannot shut down the refinery. What quantity of product should they make in an effort to break even? Their primary product sale price is $1.50 per gallon. The production fixed cost is $36,000/day. The variable cost per gallon is $1.20.

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180,000 gal: Sales price * Qua...

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