Management of the Toys R4U Company needs to decide whether to introduce a certain new novelty toy for the upcoming Christmas season, after which It would be discontinued, The total cost required to produce and market this toy would be $500,000 plus $15 per toy produced. The company would receive revenue of $35 for each toy sold.
a. Assuming that every unit of this toy that is produced is sold, write an expression for the profit In terms of the number produced and sold. Then find the breakeven point that this number must exceed to make it worthwhile to introduce this.
b. Now assume that the number that can be sold might be less than the number produced. Write an expression for the profit in terms of these two numbers.
c. Formulate a spreadsheet that will give the profit In part before any values of the two numbers.