Rosario Company, which is located in Buenos Aires, Argentina,
manufactures a component used in farm machinery. The firm’s fixed
costs are 3,900,000 p per year. The variable cost of each
component is 1,700 p, and the components are sold for
3,200 p each. The company sold 6,000 components during the
prior year. (p denotes the peso, Argentina’s national
currency. Several countries use the peso as their monetary unit. On
the day this exercise was written, Argentina’s peso was worth 0.104...