A group of venture investors is considering putting money into Lemma Books, which wants to produce a
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A group of venture investors is considering putting money into Lemma Books, which wants to produce a new reader for electronic books. The variable cost per unit is estimated at $200, the sales price would be set at 1.5 times the VC/unit, and fixed costs are estimated at $750,000. a. Find the break-even quantity b. The investors will put up the funds if the project is likely to have an operating income (profit) of $500,000 or more. What sales volume (quantity) would be required in order to meet the minimum profit goal?
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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