Valhalla Company produces gaming systems. The company is deciding whether to go into a new market with the following information provided below. The market is expected to have a five year life cycle with the R & D and design phase to take one year. The company has sales in a number international markets. The budgeted costs are provided below: Total Fixed Costs Over the Five Years Variable Costs/Unit Over the Three Years ESTIMATED SELLING PRICE YEAR 1 R & D Costs $ 1,000,000 Design Costs $ 2,100,000 [per unit] $ 240.00 $ es $ - YEAR 2 & 5 Production $ 28,000,000 $ 20.00 Marketing & Distribution $ 4,000,000 $ 10.00 Customer Service $ 2,000,000 $ 1.00 Totals $ 37,100,000 $ 31.00 What would be the breakeven level of activity for the product line over its life?[Round the number down always.] The managers are thinking of two different pricing systems. A B The company could sell the product at $250 per unit and sell 250,000 units. The company could sell the product at $200 per units and sell 400,000 units. What is the operating income of strategy A? The managers are thinking of two different pricing systems. Choose... RESEARCH & DESIGN 177,511 $30,500,000 MANUFACTURING $17,650,000 ANSWER E DESIGN A The company could sell the product at $250 per unit and sell 250,000 units. Choose... B The company could sell the product at $200 per units and sell 400,000 units. What is the operating income of strategy B? What other factors should the company consider in choosing a pricing strategy? A B Import taxes into different international markets Customer needs Choose... Competitors pricing strategies D A & B E A, B & C What is the most important section of the value chain over the life cycle? Choose...