Question: 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.

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.

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/mo,. now long (number of months) is the payback period?

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