Question
Intel discovers that the Intel Logo products are very popular. They decide to manufacture and sell wine coolers for homes (with their logo on the
Intel discovers that the Intel Logo products are very popular. They decide to manufacture and sell wine coolers for homes (with their logo on the front). They can sell each unit for $2,000 and their cost of packaging is $30 per unit, manufacturing is $700, and shipping is $20 per unit. Their rent, payroll, depreciation and other manufacturing overhead cost $25 million per year. What is their breakeven in units if they estimate the following price and costs? How many do they need to sell to reach a target profit of $100 million?
a. Breakeven
b. Profit of $100 million
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