Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 Break-even 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 Break-even price for that sales forecast.
Please, include in the submitted a step-by-step explanation of how you have calculated your break-even 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 break-even 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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

General Managers In Action Policies And Strategies

Authors: Francis Joseph Aguilar

2nd Edition

0195073673, 978-0195073676

More Books

Students also viewed these General Management questions