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A new product is planning to be released to market. The variable and fixed cost estimations related to manufacturing and other operations are as follows:
A new product is planning to be released to market. The variable and fixed cost estimations related to manufacturing and other operations are as follows: Fixed costs Metal molding machine: $150,000 Plastic grip molder: $50,000 Sander $10,000 Total Fixed Cost ? Variable costs (per unit) Packaging material: $1.50 Raw material $1.25 Grip material: $0.25 Shipping $1.00 Total Variable Cost per unit The marketing department estimates that they can sell their new product for $20 per unit. Calculate the break even of annual sales, where the total cost of operations are justified by the total revenue
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