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Best Buy stores plan to sell an exclusive Sony 65 OLED TV for $2,500. A total of 1 million OLED TVs are expected to be
Best Buy stores plan to sell an exclusive Sony 65 OLED TV for $2,500. A total of 1 million OLED TVs are expected to be sold this year, with 65total of 1 million OLED TVs are expected to be sold this year, with 65 OLED TVs accounting for 20% of that number. Specialty consumerOLED TVs accounting for 20% of that number. Specialty consumer-- electronics retailers like Best Buy usually have a margin of 20%. Sony haselectronics retailers like Best Buy usually have a margin of 20%. Sony has already spent $25 million on R&D for this TV and its annualized fixedalready spent $25 million on R&D for this TV and its annualized fixed costs of manufacturing this TV are expected to be $7 million. It plans tocosts of manufacturing this TV are expected to be $7 million. It plans to spend $1.2 million in advertising the TV this year. The variable costs ofspend $1.2 million in advertising the TV this year. The variable costs ofspend $1.2 million in advertising the TV this year. The variable costs ofspend $1.2 million in advertising the TV this year. The variable costs of manufacturing and packaging this TV are $1,200 per unit. To buildmanufacturing and packaging this TV are $1,200 per unit. To build awareness for the TV, Sony will set up a dedicated storefront inside selectawareness for the TV, Sony will set up a dedicated storefront inside select Best Buy stores that will cost $800,000 per year in rent and salaries. ItsBest Buy stores that will cost $800,000 per year in rent and salaries. Its salespeople are paid a commission of 10%.salespeople are paid a commission of 10%. How many of these TVs should Sony sell per year to break even?How many of these TVs should Sony sell per year to break even? What market share in 65 OLED TVs must Sony obtain to break even?What market share in 65 OLED TVs must Sony obtain to break even? Calculate Sonys profit if it obtains 10% market share in 65 OLEDCalculate Sonys profit if it obtains 10% market share in 65 OLED TVs.TVs
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