Question
Question 3: US-based CamTech has been making security video cameras for the commercial market. The smart home security camera market in the U.S. is projected
Question 3: US-based CamTech has been making security video cameras for the commercial market. The smart home security camera market in the U.S. is projected to have a compound annual growth rate of 15% for the next several years, so they are considering a home security camera that is water resistant, compatible with Alexa and Google Assistant, and wired or wireless in operation. Some other cameras offer these features. To differentiate, they plan to support both 2.4g and 5g (most support only 2.4g) and allow buyers to use their own cloud storage for videos (most charge a monthly fee for cloud storage). Cameras without these features retail for $60-95, and they think people may be willing to pay more for this one. It will require $475,000 in fixed costs for a new production line, and the variable cost per unit will be $39.00. Management wants to determine the price it should charge to retailers. What is the break-even point (BEP) in units at each of these three prices to retailers? (9 pts/3 each) BEP units at $49.50 _______________
BEP units at $54.50_______________
BEP units at $59.50_______________
If you were their marketing manager, which price would you choose and why (keeping in mind that retailers will take an additional markup)? _____________
PLEASE HELP! THANK YOU :)
Step 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