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Kirkland Video Games Inc is developing a new video game. It is the most sophisticated game on the market. It sells the video game for
Kirkland Video Games Inc is developing a new video game. It is the most sophisticated game on the market. It sells the video game for $210 per copy. Variable costs to produce and sell the video game amount to $50 per copy. Fixed costs amount to $323.200. The company anticipates selling 410 copies of the game per month. The company's policy is to stop producing the video game as soon as a competitor comes out with a more sophisticated version (a) Calculate the amount of operating income the company will earnifit takes 10 months for a competitor to produce a more sophisticated version of the video game Operating Income $ e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b) Calculate how many units of the video game the company will have to sell in order to breakeven Units to break even units eTextbook and Media Save for Later Attempts:0 of 3 used Submit Answer (c) If the company wishes to earn $31.450 over the product's life, calculate the selling price of the video game if a competitor introduces a more sophisticated version of the video game in 5 months. Assume that unit sales are 410 copies per month. (Round answer to decimal places, eg. 125.) Selling price $ per unit e Textbook and Media Save for Later Attempts: 0 of 3 used Submit
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