Question: 1. GE intends to develop a new solar panel. In order to do so it needs to buy additional equipment at a cost of $280,000,000.

1. GE intends to develop a new solar panel. In order to do so it needs to buy additional equipment at a cost of $280,000,000. Other development costs including salaries and testing will add up to $56,000,000. The company estimates that the coats will be able to sell for at least $100 on average. The materials used in each panel cost on average $15. The labor and electricity (combined) required to make each panel costs $10. a. Calculate the breakeven quantity. b. What is the profit after selling 5,000,000 coats? c. Suppose the costs of material increases by $10 after the company had sold 3,000,000 panels, what will the profit be when they sell 5,000,000 coats, if they change the price at the same time to $120 per panel? d. Assume that the monthly demand for the coats was 750,000 at the price of $100 and the price elasticity of demand is -1.5. What will the new demand for coats be if the price is increased to $120 next month?

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