Question: PROBLEM 3 (10 points) Matthew Simpkins, is getting ready to sell his first video game, entitled Western Civilizations. The cost associated with developing this video

PROBLEM 3 (10 points) Matthew Simpkins, is

PROBLEM 3 (10 points) Matthew Simpkins, is getting ready to sell his first video game, entitled Western Civilizations. The cost associated with developing this video game is $5,000 but each game cost $5. If the video games could be sold for $20 each, how many video games must be sold to break even? What is the breakeven point in dollars. If demand substantially exceeds the break-even point and another video game series is produced at a cost of $10,000, and cost to produce each game is $5.00 per game, what would the breakeven point be for this new production process and what is the difference in profit be for the two processes if the total demand is 500 units per month? For what volume of demand should Matthew choose the new studio

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