Question: Answer the question below using the following information: Rent: $30,000 Factory Machine Setup: $150,000 Managers Salaries: $75,000 Advertising: $10,000 Production Cost: $10 per unit Sales
Answer the question below using the following information:
Rent: $30,000
Factory Machine Setup: $150,000
Managers Salaries: $75,000
Advertising: $10,000
Production Cost: $10 per unit
Sales Price to Retailers: $20 per unit
Using the information above, calculate the break even amount of revenue for the product (i.e., how much revenue will be earned when the break even # of units is sold). Enter a number below. Note: Although your calculation should yield a dollar amount here, you do not need to enter the $ sign itself in the answer box below (just enter the number)= 26500
Using the information above, calculate the number of units you would need to sell to make $1,000,000 in profit. Enter a number below. = 530,000
Using the information above, calculate the number of units you would need to sell to make $1,000,000 in profit. Enter a number below.= 126500
QUESTION:
Given your previous market potential and break even calculations, do you believe that moving forward with bringing the product to market is a good decision? Explain below
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