Breakeven Point A product development project has been proposed to create a derivative product from one of
Question:
Breakeven Point A product development project has been proposed to create a derivative product from one of the standard products for niche customers who are hobbyists. This would require some modification in the hardware and software of the product and some changes in manufacturing tooling and test equipment. When the project completes, a major advertising campaign would be conducted to introduce the product and then a smaller amount of annual advertising would be required. It is expected that 70% of the sales would come from online buyers, although the product would be sold through some stores that carry supplies for hobbyists at a wholesale rate.
The other worksheet in this workbook shows the cost and benefit data needed to do a breakeven analysis. If the market size is expected to be 100,000 customers, is your recommendation for the project or against it?
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
8th edition
Authors: Hilton Murray, Herauf Darrell