at $80 per unit. How many units do they need to sell to break even? (Round your answer up to the nearest whole Budget Total fixed costs over four years Variable cost per unit Year 1 R&D costs Year 1 Design costs Years 2-4 Production 7,200,000 1,700,000 - 21,000,000 $30 per unit Years 2-4 Years 2-4 Marketing and distribution 6,200,000 10 per unit Customer service 2,400,000 Print Done - X Clear am Fina ENG US mework Part 1 of 5 Digital Arts Inc. manufactures game systems Digital Arts has decided to create and market a new system with wireless controls and excellent video graphics Digital Arts's managers are thinking of calling this system the Your Based on past experience, they expect the total ide cycle of the Yew to be four years, with the design phase taking about a year. They budget the following costs for the Yew Click the icon to view the budget) Reque Requirement 1. Suppose the managers at Digital Arts price the Yew game system at $80 per unt. How many units do they need to sell to break even? (Round your answer up to the nearest whole unit) Digital Arts will need 32167 units to break even mare hain. Budget Total fixed costs over four years Variable cost per unit Year 1 R&D co $ 7,200.000 Year 1 Design costs 1,700,000 Years 2-4 Production 21,000,000 $30 per un Years 2-4 Marketing and dininbution 6200.000 10 per und Years 2-4 Customer service 2.400.000 Done Print - X Clear air Final check Required se the 2167 1. Suppose the managers at Digital Arts price the Yew game system at $80 per unit. How many units do they need to sell to break even? 2. The managers at Digital Arts are thinking of two alternative pricing strategies. a. Sell the Yew at $80 each from the outset. At this price, they expect to sell 1,600,000 units over its life cycle. b. Boost the selling price of the Yew in year 2 when it first comes out to $95 per unit. At this price, they expect to sell 1,000,000 units in year 2. In years 3 and 4, drop the price to $80 per unit. The managers expect to sell 300,000 units in years 3 and 4 (225,000 in year 3 and 75,000 in year 4). Which pricing strategy is recommended? Explain. 3. What other factors should Digital Arts consider in choosing its pricing strategy? Print Done