Assume that the following data has been determined for the development and sale of a

new digital thermometer for home use: development cost = $200,000, production

investment = $400,000, annual production volume = 20,000 units per year, and sales

lifetime = 7 years. Assuming a variable production cost of $4 per unit.

Question no.3 Assume that the following data has been determined for the development and sale of a new digital thermometer for home use: development cost $200,000, production investments $400,000, annual production volume = 20,000 units per year, and sales lifetime = 7 years. Assuming a variable production cost of $4 per unit. Determine the followings: a) The sales price necessary to break even within 3 years b) The profit expected over the estimated sales lifetime