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Acme has three product lines which are Razor, elf, and cat. Info for the product lines are shown below Razor Elf Cat Revenue 70,000 31000
Acme has three product lines which are Razor, elf, and cat. Info for the product lines are shown below
Razor | Elf | Cat | |
Revenue | 70,000 | 31000 | 24000 |
Variable Costs | 36000 | 15000 | 15000 |
Fixed Costs | |||
Service Support (can avoid if product is dropped) | 12000 | 8700 | 6400 |
General (can avoid if product is dropped) | 8600 | 7300 | 5400 |
Acme is considering replacing the elf and cat with a new product line: Ashton. the new line would be sold for 15/per unit with a per-unit varable cost of 8 and would have a required customer support cost of 14,700.
What is the minimum number of ashton units, that acme company would have to sell in order to justify replacing the elf and cyan products?
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