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A SUPPLIER APPROACHES A COMPANY TO SELL A NEW PRODUCT LINE. BASED ON THE SUPPLIERS ESTIMATE THE COMPANY COULD SELL AS MANY AS 2,500 UNITS.
A SUPPLIER APPROACHES A COMPANY TO SELL A NEW PRODUCT LINE. BASED ON THE SUPPLIERS ESTIMATE THE COMPANY COULD SELL AS MANY AS 2,500 UNITS. THE SUGGESTED RETAIL PRICE FOR EACH UNIT IS $17.50.tHE PURCHASE PRICE FOR EACH UNIT IS $8.00. THE AMOUNT OF FIXED COSTS ALLOCATED TO PARTICULAR DEPARTMENT IS $9,000. CALCULATE THE PV RATIO, THE REVENUE BREAK EVEN POINT AND THE PROFIT REALISED WITH FORMULAS AND CALCULATIONS
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