Question
You work in the marketing department of the muesli manufacturer YourMuesli. Due to market stagnation, the company has decided to introduce a new muesli bar
You work in the marketing department of the muesli manufacturer YourMuesli. Due to market stagnation, the company has decided to introduce a new muesli bar to the market. You are now assigned to perform a profitability analysis for the product idea using the break-even analysis. The following information is available to you for this purpose: Fixed costs of 1.5 million are incurred annually for the production of the cereal bar. The product is sold to retailers for 0.80 per bar. Variable costs are 0.30 per bar. Annual fixed costs of 1.5 million are incurred for the production of the muesli bar. The product is sold to retailers for 0.80 per bar. Variable costs are 0.30 per bar. The projected sales volume is 4 million bars per year. What is the profit or loss of the product?
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