Question
Harrison Ford makes handcrafted Star Wars Action figures, which he sells at Comic Conventions. He is considering mass producing the dolls to sell in stores
Harrison Ford makes handcrafted Star Wars Action figures, which he sells at Comic Conventions. He is considering mass producing the dolls to sell in stores (because I mean heyhe is Harrison Ford). He estimates that the initial investment for plant and equipment will be $25,000, whereas labor, material, packaging, and shipping will be about $10 per action figure.
A. If the action figures are sold for $30 each, what sales volume is necessary for Mr. Ford to break even? B. Mr. Ford has determined that $10,000 worth of advertising will increase sales volume by 400 action figures. Should he spend the extra amount for advertising? (Material from Week 1/Chapter 1)
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