(Solved):Q: In a plant opera…

 

Question

Question

In a plant operating at 80% of its annual production capacity, gross profit is 2.35M. Cost of raw materials represent 40% of the total variable cost and is 80% of the fixed cost. Fixed cost is equivalent to 90% of the depreciation cost of the depreciable asset on the 7th year. Depreciable asset amount to 20M while the salvage value is 3M. The annual

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