A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is $ 885,093 per month. The variable cost per thousand board feet is $135 The price charged will be determined by p= $600-0.05D per board feet. Determine the optimum monthly profit for this product.

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A:

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A: Answer to the question is as follows:

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Q: True or False Total cost can increase as a result of an increase in variable cost.

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A: Fixed Total Cost: Fixed total cost refers to the total expense or price associated with a particular…