Amjad cereals Ltd has developed a new design of short-handled tennis racket. He has done this in his spare time and must now decide whether or not to set in business to market this new product. The potential sales volume is difficult to predict, but the following estimates have been made. Sales price per Racket Sales volume per year 14$ 17,500 rackets 15$ 15,000 rackets 21$ 10,000 rackets 23$ 9,000 rackets He plans to have the rackets manufactured for him by an external supplier and to organize selling and distributing through his own company. Production and selling costs would be as follows. Variable cost per racket Fixed costs for up to 10,000 rackets per year 9$ 110,000 for over 10,000 rackets per year 6$ 120,000 The costs above exclude the following consideration.