Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Imagine you want to start up a company to manufacture and sell Wildcat sunglasses. You've done your homework A and estimate the variable costs (including
Imagine you want to start up a company to manufacture and sell Wildcat sunglasses. You've done your homework A and estimate the variable costs (including trademark privileges) will be $77 a pair and the fixed costs to be $178,000. If you sell the sunglasses for $99 a pair, how many pairs do you need to sell to break even? 5,000 8,091 1,797 2,312 2 Imagine you want to start up a company to manufacture and sell Wildcat sunglasses. You've done your homework and estimate design and launch costs to be $100,000. You expect to sell 500 pairs in the first year, 2,000 pairs in the second year, and 5,000 pairs in the following three years. The sales price will be $99 and each pair will cost $75 to produce and market. If your required return is 20%, what is your NPV? (Round your answer to the nearest cent, e.g., $100,000.01.) $115,668.45 $118,873.46 $123,456.78 $114,567.33 3 Break-even analysis is a simple way to evaluate a new product's potential return. Which of the following information do you need to calculate the break-even quantity? Fixed costs, variable costs, and price Variable costs, interest rate, and price Interest rate, price, and fixed costs Price, fixed costs, and interest rate
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started