In the videos, we assumed that product #1 would launch in week 1 and sell 45 units at $10.00 per unit, including sales tax. We also assumed that product #1 would cost $3.57 to make. Your operations team has found a new supplier that can make the product cheaper, but the quality will be lower. You estimate that the new cost per unit would be $3.00, but you would sell only 40 units in week 1 due to lower quality. How much will Total Net Income for the entire 9 weeks be if you decide to go with the lower cost product, keeping all other assumptions unchanged? 

$1031 

$1129 

$1355 

$833

Which of the following is/are true (select all that apply)? 

If you show a loss in a given week, income tax expense for the week should be $0 because you don't have to pay income taxes when you lose money 

If you record income tax expense as $0 during a week when you actually show a loss, your effective tax rate for the semester goes up 

If you record income tax expense as $0 during a week when you actually show a loss, your effective tax rate for the semester goes down 

If you show a loss for a given week and record the income tax expense as $0 for that week, you total net income for the semester will be lower 

In the videos, we assumed that product #2 would launch in week 2 and sell 40 units at $15.00 per unit, including sales tax. How much will week 1 net income be if the only assumption we change in the model is to move product #2 launch UP to week 1? (Still 40 units in the first week of sales for that product and the same weekly growth rate.) 

$269) 

$746) 

$991 

$625