Diane Kennedy is contemplating the possibility of going into competition with Primary Pumps, a manufacturer of industrial

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Diane Kennedy is contemplating the possibility of going into competition with Primary Pumps, a manufacturer of industrial water pumps. Diane has gathered some interesting information from a friend of hers who works for Primary. Diane has been told that the mean sales for Primary are 5,000 units and the standard deviation is 50 units. The opportunity loss per pump is $100. Furthermore, Diane has been told that the most that Primary is willing to spend for market research for the demand potential for pumps is $500. Diane is interested in knowing the break-even point for Primary Pumps. Given this information, compute the breakeven point.


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Quantitative Analysis for Management

ISBN: 978-0132149112

11th Edition

Authors: Barry render, Ralph m. stair, Michael e. Hanna

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