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Barbarian Inc., the maker of personal computer games has been contacted by Super Fast Inc., which has developed a new technology for personal computer gamers

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Barbarian Inc., the maker of personal computer games has been contacted by Super Fast Inc., which has developed a new technology for personal computer gamers which provides a new challenge for gamers. The new technology consists of a seat pad for the gamer's chair which is connected to a control unit which is connected to the personal computer. When the gamer makes an error while playing Raceway 400 he/she receives a "mild electric shock through the seat pad. The new technology, which has received extremely positive reviews from a panel of gamers, consists of the Raceway 400 game CD, the seat pad, the control unit and cables. In tests, by Barbarian Inc., the new technology has performed flawlessly, is considered safe and Barbarian Inc. is considering licensing Super Fast's new gamer technology. The following cost information pertains to the new technology: Super Fast Raceway 400 Software License .$150,000 New Equipment To Produce Seat Pads. .$75,000 Advertising and promotion ...... $150,000 Material & Royalties Raceway 400 Game (per 100 CDs)..... $500 Material & Labor For Seat Pad (per 10 pads) ... $150 Control Unit And Cables (per unit) ... .$5 Market research estimates that the market for the new Raceway 400 game and equipment is 1,000,000 units at a retail price of $100, which includes the game CD, seat pad, control unit and cables. Barbarian Inc. traditionally sells through major retailer clubs like Costco. The club's traditional margin is 20%. a. How much revenue does Barbarian Inc. receive for each unit sold? b. What is Barbarian Inc.'s contribution margin per unit? c. What is the break-even volume in units? d. How many units did Barbarian sell if Total Sales Revenue = $1,000,000?_ e. What is the profit if Barbarian's Total Sales Revenue = $1,000,000

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