Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please solve the following questions. 1. Max Leonard, vice president of Marketing for Dysk Computer, Inc must decide whether to introduce a mid-priced version of
please solve the following questions.
1. Max Leonard, vice president of Marketing for Dysk Computer, Inc must decide whether to introduce a mid-priced version of the firm's DC 6900 personal computer product line the DC 6900-X. The DC6900-X would sell for $4,000, with unit variable costs of $2,250. Projections made by an independent marketing research firm indicate that the DC6900-X would achieve a sales volume of 50,000 units next year, in its first year of commercialization. One-half of the first year's volume would come from competitors' personal computers and market growth. However, a consumer research study indicates that 30 percent of the DC6900-X sales volume would come from the higher-priced DC6900-0mega personal computer, which sells for $3,000 (with unit variable costs of $1,800). Another 20 percent of the DC6900-X sales volume would come from the economy-priced DC6900-Alpha personal computer, priced at $2,200 (with unit variable costs of$ 1,200). The DC6900-0mega unit volume is expected to be 40,000 units next year, and the DC6900-Alpha is expected to achieve a 60,000-unit sales level. The fixed costs of launching the DC6900-X have been forecast to be $1 million during the first year of commercialization. Should Mr. Leonard add the DC6900-X model to the line of personal computers? WhyStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started