Suppose your selected company is planning to launch a new product. The target profit for this new product is roughly 1/12 the entire company's most recently reported annual profit (before taxes). The fixed cost for the new product is estimated to be about 40% of the most recently reported annual cost of goods sold. The contribution margin per unit is smaller by a factor of 20 of the new product's fixed cost. How many units must be sold for the new product line to breakeven? You must show ALL your assumptions and calculations.

Answer rating: 100% (QA)

Answer To solve this problem we need to find the breakeven point for the new product line which is t... View the full answer