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EpoxyShields is considering producing and selling a new product for asphalt repair. The fixed cost for setting up the production floor is estimated to be
EpoxyShields is considering producing and selling a new product for asphalt repair. The fixed cost for setting up the production floor is estimated to be $120,000. Variable production and material cost are estimated to be $7 per 10 Litre unit of the product. Epoxyshield estimates the total demand for the products to be 5000 units. Epoxysheid plans to sell the product to hardware stores for $25 per unit. b) What profit or loss can be anticipated with a demand of 5000 units?
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