Question: Roadside Inc is fine-tuning a combination flashlight / WiFi hotspot called the T.G.I.WiFi. The T.G.I.WiFi would sell for $34.71. Variable cost to Roadside Inc. would

Roadside Inc is fine-tuning a combination flashlight / WiFi hotspot called the T.G.I.WiFi. The T.G.I.WiFi would sell for $34.71. Variable cost to Roadside Inc. would be $12.19 per unit. Setting up production would entail relevant fixed costs of $315,200. The board of directors, citing technical risk, insists that this project cannot go forward unless the new product would earn a return on sales of 18%. Calculate annual breakeven in UNITS SOLD for the T.G.I.WiFi, meeting the board's ROS% target. (Rounding: tenth of a unit)

Roadside Inc is leaning toward introducing a new super-lightweight lamp called the FeatherLight. The FeatherLight will sell for $25.15 each. The board expects this project will earn a 17% Return on Sales, and has calculated breakeven sales in UNITS as 163,239 units. However, the board wants to know breakeven sales in DOLLARS, instead. Calculate breakeven sales for the FeatherLight in DOLLARS. (Rounding: whole dollar.)

Under pressure from its board of directors, management at Roadside is planning to enter the conventional battery-powered flashlight market. Roadside expects to sell this boring product to wholesalers for $17.77 per unit. Relevant fixed costs will total $457,867, and variable costs to make this product will be $12.35 per unit. Background research estimates the size of the market for conventional flashlights at 1.8 million units per year. Calculate breakeven market share for this conventional flashlight. In other words, if sales of this unit reach breakeven, what market share will Roadside have? (Report your answer as a percent. Report 27.5%, for example, as "27.5". Rounding: tenth of a percent.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!