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- Example: the following data has been publicly reported for the development and sale of the HP DeskJet: sales price= $300, development cost= $50 million,
- Example: the following data has been publicly reported for the development and sale of the HP DeskJet: sales price= $300, development cost= $50 million, production investment= $25 million, annual production (sales) volume= 4 million units per year, and sales lifetime = 2 years. Assuming a fictitious variable production cost of $225/unit, determine: (a) the number of units that must be sold to break even (b) the profit expected over an estimated sales lifetime of 2 years
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