Question 2: Survival Breakeven Revenue. This question has three parts. A start-up company is forecasting $8,500,000...

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Question 2: "Survival Breakeven Revenue." This question has three parts. A start-up company is forecasting $8,500,000 of revenue next year on sales of 4,000 units. The company projects that each unit sold will require $500 of raw material costs (per unit) and $80 of direct labor expense (per unit). In order to achieve this sales goal, the company will need to spend $1,500,000 in marketing expense for the year. The company is also forecasting $600,000 of yearly lease expense for renting an office space. Assume that all revenue and expenses will be collected and paid for in the forecasted year. For simplicity assume no taxes. Based on this financial information fill in the following blanks for each part. Input your answers in the box in the $x,xxx,xxx format (.e. $1,000,000). For the forecasted year: Part A: What is the company's total Fixed Cost? Part B: What is the company's total Variable Cost? Part C: What is the company's Survival Breakeven Revenue? Question 2: "Survival Breakeven Revenue." This question has three parts. A start-up company is forecasting $8,500,000 of revenue next year on sales of 4,000 units. The company projects that each unit sold will require $500 of raw material costs (per unit) and $80 of direct labor expense (per unit). In order to achieve this sales goal, the company will need to spend $1,500,000 in marketing expense for the year. The company is also forecasting $600,000 of yearly lease expense for renting an office space. Assume that all revenue and expenses will be collected and paid for in the forecasted year. For simplicity assume no taxes. Based on this financial information fill in the following blanks for each part. Input your answers in the box in the $x,xxx,xxx format (.e. $1,000,000). For the forecasted year: Part A: What is the company's total Fixed Cost? Part B: What is the company's total Variable Cost? Part C: What is the company's Survival Breakeven Revenue?

Answer rating: 100% (QA)

Part A The companys total fixed costs include the marketing expense and lease expense Total ... View the full answer