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QUESTION 2: B Company is planning to prepare 3 packages of software type X, Y and Z. The estimated sales price for these three
QUESTION 2: B Company is planning to prepare 3 packages of software type X, Y and Z. The estimated sales price for these three products is 1.000 TL, 1.200 TL and 1.500 TL, respectively. Estimated unit sales are 500 units, 400 units and 250 units, respectively. Fixed and variable costs projected by the firm are as follows. YEARS Research Development Costs Design Costs YEARS Production Costs Marketing Costs Distribution Expenses Customer Service Costs Production Costs Marketing Costs Distribution Expenses Customer Service Costs FIXED COSTS 1 2 48.000TL 32.000 TL 3 4 5 6 20.000 TL 14.000 TL 10.000 TL 16.000 TL VARIABLE COSTS 3 4 5 6 30 TL 25 TL 20 TL 35 TL Required: Accordingly, which package software should the company decide to produce? (30p)
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