Roadside Inc is fine-tuning a combination flashlight / WiFi hotspot. The new product would sell for $36.15.
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Question:
Roadside Inc is fine-tuning a combination flashlight / WiFi hotspot. The new product would sell for $36.15. The variable cost of production would be $12.70 per unit. Setting up production would entail relevant fixed costs of $322,045. The board of directors, citing technical risk, insists that this project cannot go forward unless the new product would earn a return on sales of 14%. Calculate breakeven sales in DOLLARS, meeting the profit target. (Rounding: penny.)
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