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Even Analysis (12 Points) A Toy producing company is considering a new production. The fixed cost is estimated to be $96,000. Variable production and material
Even Analysis (12 Points) A Toy producing company is considering a new production. The fixed cost is estimated to be $96,000. Variable production and material costs are estimated to be $10 per unit. Demand over this toy is estimated to be 5800 units. The company plans to sell to the local shops for $42 each. a) What is the breakeven point? b) What profit or loss can be anticipated with a demand of 5800 units? c) With a demand of 5800 units, what is the minimum price per toy that the company must charge to break even? d) If the marketing department manager believes that the price per toy could be increased to $50 with the cost of losing 12% of customers (12% of 5800 units), what action would you recommend? What profit or loss can be anticipated? 15 minutes a dide
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