A ceramic company is planning to develop and launch a new pitcher.

• The pitcher will sell for $22.50, and it will cost $11.00 to manufacture.
• The project costs to design and develop the pitcher are $700,000.
• The marketing campaign to launch the pitcher will cost the company $400,000.

Solve:

*How many units does the company have to sell to break even?

*If the pitcher launches in January and sales are 10,000/month, in what month will it break even?

*If the pitcher launches in January and sales are 10,000/month, how long (number of months) is the payback period?