Sarah is the marketing manager for Utter Mayhem, the hottest new game among teenage gamers. In order to get her bonus she has to sell a lot of games in the Christmas launch, as Utter Mayhem was a bit pricy to make. She has the following information.

FC = $1.200.000 Price = $55 Unit variable cost = $28

If Breakeven Even Volume (BEV) = fixed costs / (price-variable cost) then how many games does Sarah need to sell to make a profit of $500,000.

Sarah has launched the EU marketing plan for Utter Mayhem and expects to sell 100,000 units in addition to those sold in the US. The retail price for the units sold in the EU is $60 USD. The distributor expense adds an additional $5 to the unit variable cost for each unit sold in the EU and fixed costs increase by $25,000. What are the firms TOTAL profits for both the US and the EU if it sells 75,000 games in the US? HINTS: You need to determine Sarahs new fixed costs AND her variable cost for each unit sold in the EU. Make sure you account for units sold in the US and the EU You are looking for TOTAL profits