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The company has monthly fixed costs of $1960

The company has monthly fixed costs of $1960, and it sells worms for $5

per gallon. Its AVC and MC is $2.20 per gallon of worms.

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(a) How many gallons will it have to sell in order to break even

(b) Suppose the company wants to have profits of $12000. What monthly

quantity will it have to sell to accomplish this

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