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Estimate the Break - even price for a new game to be launched as follow: In the Strategy Room, within the Report section, find the
Estimate the Breakeven price for a new game to be launched as follow:
In the Strategy Room, within the Report section, find the Income Statement report. Sum up your last period's Financial, General and administrative, Customer Service, and Communication expenses. Add this result to the projected Development and Communication expenses of the new game. The result will be your Fixed Cost.
Decide how many DVDs you are going to manufacture and find out the Manufacturing cost per unit. This figure will be the Variable cost.
Based on the units you are going to sell Sales forecast determine the Breakeven price for that sales forecast.
Please, include in the submitted a stepbystep explanation of how you have calculated your breakeven point.
Answer the following questions:
Check the number of projected sales. Will you sell those many units? Is it feasible?
If the forecasted sales number is a feasible goal, what should be your actual selling price? Remember that your breakeven price will return a nil profit.
Explain how you came up with the selling price. What influenced you to set that price point up Explain.
What will be your operating profit at this selling price if the actual sales are the projected ones?
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