Answered step by step
Verified Expert Solution
Question
1 Approved Answer
v 7. Zinc Energy Co has launched a new battery that uses new zinc- air technology. The unit costs for the batter are: battery housing
v
7. Zinc Energy Co has launched a new battery that uses new zinc- air technology. The unit costs for the batter are: battery housing of $8, materials $6 and direct labour $6 per unit . Retooling of the factory will add a one time additional fixed cost of $1 million in equipmnmet. Annual fixed costs include sales, marketing and advertising expenses of $1 million, general and admin expenses of $ 1 million and other fixed costs totaling \$2 million. (3 Marks) a. What is the total variable cost associated with the new battery? b. What are the total fixed costs of the new battery? c. If the price is set at $35 for the new battery what would the break even point be in units? In \$ sales 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