Question: 12. Dartboard Startup (Part e) You are considering opening a new business to sell dartboards. You estimate that in order to start the business, your

12. Dartboard Startup (Part e) You are considering opening a new business to sell dartboards. You estimate that in order to start the business, your manufacturing equipment will cost $100,000 and facility updates will cost $200,000. You are able to raise $120,000 from investors with a promise of a 12% return on their investment. Your bank has agreed to loan you the remaining $180,000 at a 7% rate of interest. You estimate that you will bring in $50,000 per year in profit and that your equipment and facility updates will last 10 years. Thus, in the current year (year zero), you incur a $300,000 cost, and in years one through ten of your investment, you make $50,000 in profit each year. A year after you open the darts division, a foreign competitor copies your design and starts selling sets of darts similar to yours. This significantly reduces demand for your darts and drives down the price at which you can sell your darts. You are deciding whether you should continue producing the darts. The extra space you bought for $100,000 can be sold for $80,000, but nobody wants the manufacturing equipment you bought for $50,000 to produce the darts. Recall that it costs you $10 (in labor and material) to produce a set of darts. If the new estimated demand for your darts is 10,000 sets, what is the break-even price for a set of darts? Interpret this number in the context of this

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