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NOTE: You may receive ZERO marks for this question if you do not submit proof of working out. Keep your working out for this question
NOTE: You may receive ZERO marks for this question if you do not submit proof of working out. Keep your working out for this question to submit for the final question Clearly label answers . Combine all your images/ working out into one file (can be pdf/word/jpg etc (NOT .HEIC) Assume that the following data has been determined for the development and sale of a new widget. Development cost = $18 000 Initial production investment = $52 000 Sales volume = 2000 units per year . Production costs per unit = $27 Sales Price = $42 Before production begins, you as a product engineer have been told by your suppliers that the production tool you planned to purchase will be $4000 more expensive that budgeted. You need to inform management what the implications of this are. If the sales price and volume remains the same, how much of a delay in the breakeven point will this additional investment cost mean for the company? Give your answer in months and fractions of months to one decimal place (eg 7.5 months)
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