Question
Zinc Energy Resources Co., a new division of a major battery manufacturing company, recently patented a new battery that uses zinc-air technology. The unit costs
Zinc Energy Resources Co., a new division of a major battery manufacturing company, recently patented a new battery that uses zinc-air technology. The unit costs for the zinc batter are $8 for housing, materials are $6, direct labor is $6 per unit. Retooling the existing factory facilities to manufacture the batteries amount to an additional $1 million in equipment cost. Annual fixed costs include sales marketing and advertising expenses of $1 million; general and administrative expenses of $1 million and other fixed cost totaling $2 million.
If the price for the new batter was set at $35, what would the breakeven point be?
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