Q: what is the break-even sales volume for Product 2?

The Gizmo Manufacturing Company is considering making and selling a new product. Based on the data provided early to management, the annual worth for Product 1 was determined as follows: AW. (149) ==- $285.760.71 + $14.10X It was also determined annual sales needed to be at least 20,267 units for the product to yield a positive-valued annual worth. Now, suppose a more sophisticated (and more expensive) version called Product 2, has been proposed. Specifically the following data are provided for Product 2: Sales price $46/unit Equipment cost $510,000 Incremental overhead cost $45,000/year Sales and marketing cost $300,000/year Operating and maintenance cost $42/operating hour Production time/1,000 units 250 hours Packaging and shipping cost $1.75/unit Planning horizon 10 years Minimumum attractive rate of 14 percent return Salvage value for all equpment negligible