Ceradyne Electronics has just developed a low-end headset that it plans to sell via a cable channel marketing program. The cable program's fee for selling the item is 20 percent of revenue. For this fee, the program will sell the headset over six 10-minute segments in September. Ceradyne's fixed costs of producing the headset are $154,000 per production run. The company plans to wait for all orders to come in then it will produce exactly the number of units ordered. Production time will be less than three weeks. Variable production costs are $26 per unit. In addition, it will cost approximately $5 per unit to ship the headsets to customers. Patricia Johnson, a product manager at Ceradyne, is charged with recommending a price for the item. Based on her experience with similar items, focus group responses, and survey information, she has estimated the number of units that can be sold at various prices: Price Quantity $85 12,000 $75 18.300 $65 30,900 $55 44,300 $45 63.400 (a) Calculate expected profit for each price. (Enter loss using either a negative sign preceding the number es-45 or parentheses eg. (45)) (a) Calculate expected profit for each price. (Enter loss using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) Price Profit $85 $ $75 $ $65 $ $55 $45 S (b) Which price maximizes company profit? Profit maximizing price $ Lawn Ventures is considering producing a new line of hang-gliders. The company estimates that variable costs will be $410 per unit and fixed costs will be $416,000 per year. (a) Lawn has a pricing policy that dictates that a product's price must be equal to full cost plus 50 percent. To calculate full cost, Lawn must estimate the number of units it will produce and sell in a year. At the beginning of the year, Lawn estimates that it will sell 1,600 gliders and sets its price according to that sales and production volume. What is the price? Price $ eTextbook and Media Current Attempt in Progress Beca Plumbing Fixtures is developing a preplumbed acrylic shower unit. The team developing the product includes representatives from marketing, engineering, and cost accounting. To date, the team has developed a set of features that it plans to incorporate in the unit, including a seat, two shower heads, four body sprays, and a steam unit. With this set of features, the team believes that a price of $4,900 will be attractive in the marketplace. Beca seeks to earn a per unit proht of 30 percent of selling price. (a) Calculate the target cost per unit. Target cost eTextbook and Media per unit