product A: company sells it profit -9000 sales - 50000 fixed cost - 21000 variable cost - 0,64 per one Product B: compa

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

product A: company sells it profit -9000 sales - 50000 fixed cost - 21000 variable cost - 0,64 per one Product B: compa

Post by answerhappygod »

product A: company sells it
profit -9000
sales - 50000
fixed cost - 21000
variable cost - 0,64 per one
Product B: company plans to start selling for 3$ per unit
variable cost - 0,72
monthly fixed cost will be increased by 8808$
initial sales of product B should total 5000 units
monthly sales of product A are expected to decline to 20000$.
After first year of Porduct B sales, company believes that product A sales will increase to 33750$ a month, product B sales will increase to 7500 units a month.
a) the monthly breakeven sales in dollars before adding product B
b) the monthly breakeven sales during the first year of product B sales, assuming a constant sales mix of 1 product A and 2 units of product B.
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply