Exercise 6.20 a-c Kirkland Video Games Inc. is developing a new video game. It is the most sophisticated game on the market. It sells the video game for $215 per copy. Variable costs to produce and sell the video game amount to $80 per copy. Fixed costs amount to $305,100. The company anticipates selling 320 copies of the game per month. The company's policy is to stop producing the video game as soon as a competitor comes out with a more sophisticated version. Calculate the amount of operating income the company will earn if it takes 9 months for a competitor to produce a more sophisticated version of the video game. Operating Income SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT Calculate how many units of the video game the company will have to sell in order to break even. Units to break even units SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT If the company wishes to earn $26,100 over the product's life, calculate the selling price of the video game if a competitor introduces a more sophisticated version of the video game in 5 months. Assume that unit sales are 320 copies per month. (Round answer to 2 decimal places, e.g. 15.25.) Selling price $ per unit SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT Question Attempts: 0 of 2 used