Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

What are the expected total Profits Over a 3-year period for Gaming and Simulation? Situational Analysis: + The company has invented a game changing' revolutionary

What are the expected total Profits Over a 3-year period for Gaming and Simulation?

image text in transcribed
Situational Analysis: + The company has invented a "game changing' revolutionary 3D Sensor and will launch 1 of 2 types of products - "Gaming" or "Simulation". Each product's life cycle will be 3 years. + "Gaming" is a VR gaming device for consumers and "Simulation" is a VR simulation device for 12,500 / uni business training. + The gaming console will be a fairly simple product while the simulation device will be more complex. + The VR gaming industry is young with high growth but has established competitors. The Business simulation segment is a much younger industry with fragmented competition. + The company's founders are young with little experience, however, the company is well funded by Venture Capital firms that have excellent experience with growing start-ups. Pricing and Demand Gaming Simulation Life Cycle (in Months) Price Per unit 500 10,000 Forecasted Monthly Units Sold: Low End 9,500 600 Forecasted Monthly Units Sold: High End 17,000 800 BEU Probability of selling at low end 60% 30% Probability of selling at high end 40% 70% Cost Structure: Gaming Simulation 9: 500 + 580 * Raw Material Cost per Unit 200 5,500 Direct Labor cost per Hour Number of Hours to make 1 Unit 0.50 58,000, 010 v Sales Commission for each Unit Sold 2.5% 8.0% Other Manufacturing Expense per Unit 700 500 F Management Salaries per Year 1,000,000 1,500,000 Upfront Capital Investment $ 40,000,000 $ 30,000,000 Yearly Advertising Expense $ 5,000,000 $ 1,000,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Physics

Authors: David Young, Shane Stadler

10th edition

978-1118486894

Students also viewed these Accounting questions

Question

7. Write a note on electrical safety

Answered: 1 week ago

Question

8. What are the basic concepts of household wiring and explain?

Answered: 1 week ago

Question

9. Explain the various methods of electrical wiring system.

Answered: 1 week ago

Question

What is the use of bootstrap program?

Answered: 1 week ago