1. A manufacturer is introducing a new product priced at $5 (MSP). The unit variable cost is $2 and advertising costs are $300,000. The new product will cannibalize an older product's sales by 20,000 units. The older product has a UC = $1.15. How many units of the new product must be sold to break even? What must the manufacturer's dollar sales volume be to break even?

Answer rating: 100% (QA)

To calculate the number of units of the new product that must be sold to break even we need to consi... View the full answer