Based on the scenario please calculate Total fixed cost Total variable cost per unit Contribution margin per unit Number of units sold needed to break even point over 5 years Scenario 3 Price product New at $600 per units and keep capacity at 350,000 units Scenario Product Launch You are the lead project manager for two product launches Product New is a completely new product in a new product category The initial plan is to price product New at $600 per unit Over the next 5 years the company could sell anywhere from 125,000 to 425,000 of product New We believe that there is a 50 chance that demand will be at the low end and a 50 chance that demand could be at the high end To achieve these projected sales numbers, for each product, the company will need to spend $8,000,000 dollars in marketing over 5 years, plus compensate the company's direct sales staff with a 5 sales commission on the purchase price of the product for each unit that is sold For product New , we projecting that the company will need to invest $36,000,000 for manufacturing equipment which will give the company the capacity to make 350,000 units of this product over 5 years As seen inExhibit A below, a thorough list of the raw material and labor cost needed to manufacture each product as well as the manufacturing overhead The company will not have enough manufacturing capacity if demand for both products is on the high end of the sales projections We feel that with an additional investment of $5,000,000 million dollars for product New , operations can increase capacity to 475,000 units over 5 years Exhibit A Operational Costs Product Product Redesign New Initial capital equipment 30,000,000 36,000,000 Incremental capital equipment to expand 10,000,000 5,000,000 Material cost per unit $ 148 75 $ 24000 Direct Product Labor cost per hour $ 2 50 25 00 Direct Product Labor hours to make one 3 2 Management Salary Per Year $ 100,000 $ 100,000 Supervisor Salary r Per Year $ 5,000 $ 5,000 Number of Managers 3 3 Number of Supervisors 10 10

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Based on the scenario please calculate: Total fixed cost Total variable cost per unit Contribution margin per unit Number of units sold needed to break-even

Based on the scenario please calculate:

Total fixed cost
Total variable cost per unit
Contribution margin per unit
Number of units sold needed to break-even point over 5 years

Scenario 3:Price product "New" at $600 per units and keep capacity at 350,000 units

Scenario: "Product Launch"

You are the lead project manager for two product launches. Product "New" is a completely new product in a new product category.

The initial plan is toprice product"New" at $600 per unit.
Over the next 5 years the company couldsell anywhere from125,000 to 425,000 of product "New".We believe that there is a 50% chance that demand will be at the low end and a 50% chance that demand could be at the high end.
To achieve these projected sales numbers, for each product,the company will need to spend $8,000,000 dollars in marketing over 5 years, plus compensate the company's direct sales staff with a 5% sales commission on the purchase price of the product for each unit that is sold.
For product "New", we projecting that the companywill need to invest $36,000,000 for manufacturing equipment which will give the company the capacity to make 350,000 units of this product over 5 years.
As seen inExhibit A below, a thorough list of the raw material and labor cost needed to manufacture each product as well as the manufacturing overhead.
The company will not have enough manufacturing capacity if demand for both products is on the high-end of the sales projections.
We feel thatwith anadditional investment of $5,000,000 million dollars for product "New", operations can increase capacity to 475,000 units over 5 years.

Exhibit A: Operational Costs Product Product Redesign New Initial capital equipment 30,000,000 36,000,000 Incremental capital equipment to expand 10,000,000 5,000,000 Material cost per unit $ 148-75 $ 24000 Direct Product Labor cost per hour $ 2?.50 25.00 Direct Product Labor hours to make one 3 2 Management Salary Per Year $ 100,000 $ 100,000 Supervisor Salary.r Per Year $ ?5,000 $ ?5,000 Number of Managers 3 3 Number of Supervisors 10 10