Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

introducing a new gadget that repairs marks on golf balls. The companys owner, Fiona Haugom, is confident that her cost estimates are accurate, but she

introducing a new gadget that repairs marks on golf balls. The companys owner, Fiona Haugom, is confident that her cost estimates are accurate, but she is not so sure about the accuracy of her sales estimates. If she decides to introduce the product, Ms. Haugom will allocate $5,000 of her companys fixed costs to it. Labour and material will be $0.5 per unit.

a. Ms. Haugom estimates that 10,000 units can be sold next summer. She wants to make 30 percent profit per unit. What price should she charge? b. What is the break-even volume at the price you just calculated? c. What will the profit be at if the expected number of sales is achieved? d. Ms. Haugom thinks her competition may be introducing a similar product. If that happens, she could lose a significant number of sales. In the worst case, she would sell only 6,000 units. What would her profit be at 6,000 units?

please answer all parts with steps and formula and dont use chatgpt

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

The Functions of Language Problems with Language

Answered: 1 week ago

Question

The Nature of Language

Answered: 1 week ago