Question: 39 Points] Sackville Plastics (SP) is considering adding a new product to its product line. The Oyster is a hard-shell case for tablet computers, designed
39 Points] Sackville Plastics (SP) is considering adding a new product to its product line. The Oyster is a hard-shell case for tablet computers, designed for those using tablets in more demanding environments. Producing this product will require the acquisition of a set of molds that can be used with injection molding equipment that SP already has. The molds will cost $90,000. Materials and labour are estimated to average $5.40 per unit, regardless of size. The Oyster will sell to distributors for an estimated $9.00. g) [5 point] Office Warehouse, a national chain of office supply stores, wants to be the exclusive distributor of the Oyster and has guaranteed to purchase 60,000 units over the next two years. What is the lowest price that Sackville Plastics can sell the Oyster for and still breakeven in 2 years?
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