also an MP$3$ player dock. Based on his experience with furniture, he believes the desk will be a popular item for four years, and then will be obsolete

because technology will have changed again.

The FFM accountants have developed the following budget for the new executive desk:

$($Click to view the budget.$)$

Requirements

Definition

Assume FFM expects to make and sell $16,000$ units in the first $32$ months $($months $5-36)$ of production

$(500$ units per month$)$ and $4,800$ units $(300$ per month$)$ in the last $16$ months $($months $37-52)$ of

production. If FFM prices the desks at $$500$ each, how much profit will FFM make in total and on

average per desk?

Suppose FFM is wrong about the demand for these executive desks, and after the first $36$ months it

stops making them altogether. It sells $16,000$ desks for $$400$ each with the costs described for months

$5-36,$ and then incurs no additional costs and generates no additional revenue. Will this have been a

profitable venture for FFM$?$

Will your answer to Requirement $2$ change if FFM still must incur the estimated fixed production costs

for the whole period through month $52,$ even if FFM stops making executive desks at the end of

$36$ months?