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Breakeven time for new product development Greyson Technology is launching a new digital communications device. Specifically, assume the following: Y1, Q1 Y1, Q2 Y1, Q3

Breakeven time for new product development

Greyson Technology is launching a new digital communications device. Specifically, assume the following:

Y1, Q1 Y1, Q2 Y1, Q3 Y1, Q4 Y2, Q1 Y2, Q2 Y2, Q3 Y2, Q4 Y3, Q1
Market research (000) ($90) ($45)
Product development (000) ($72) ($135) ($135) ($135) ($135) ($135) ($135) ($54)

Y3, Q1 Y3, Q2 Y3, Q3 Y3, Q4 Y4, Q1 Y4, Q2 Y4, Q3 Y4, Q4
Selling price $16 $15 $15 $14 $14 $14 $14 $14
Sales quantity (000) 18 27 36 41 41 32 27 18

After Y4, Q4, the competitive price is expected to remain at $14 and the maximum sales will be 18,000 units. Required Assuming that the cost per unit remains $9 and the MSDA expenses remain $108,000 per quarter, determine the breakeven time metric. Breakeven time metric AnswerNeverY3, Q1Y3, Q2Y3, Q3Y3, Q4Y4, Q1Y4, Q2Y4, Q3Y4, Q4

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