Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Laymans Guide To Managing Your Investments

Authors: Thomas Dunleavy

1st Edition

979-8763592214

More Books

Students also viewed these Finance questions

Question

Explain what data abstraction means.

Answered: 1 week ago

Question

Define the term Working Capital Gap.

Answered: 1 week ago

Question

What is the average transaction amount for Montana (MT)?

Answered: 1 week ago