Meredith realizes that a break$-$even analysis is needed to help make this decision. She instructs several staff members to perform an analysis, developing estimates of related costs and revenues as well as forecasting potential sales. One month later the financial figures are available. The cost of designing the grandfather clock and then setting up the production facilities to produce this product would be approximately $$250,000.$ There would only be one production run for the limited edition clock. The additional cost per clock produced would roughly be $$2,000.$ The marketing department estimates they would sell each clock for $$4,500$ a piece, but a firm forecast of how many of such clocks would be sold has not yet been obtained. However, it is believed that the sales would reach into three digits.

Meredith wants all these numbers pinned down considerably further but feels that some analysis can be done to achieve preliminary conclusions.