The company plans to develop a new product: an ottoman with multiple storage compartments. The sales and marketing team has projected a demand of greater than 500 per month at a selling price of $120. The company estimates the variable cost of the ottoman at $46 with the total monthly fixed cost at $21,460

a. Synthesize the results of your calculations to determine the feasibility of the company to make a profit based on the sales & marketing projections and recommend solutions to the management team that would help to ensure profitability for the ottoman project.

b. Summarize how understanding and utilizing break-even analysis can impact managerial decision making.

Answer rating: 100% (QA)

a To determine the feasibility of the companys profit based on the sales and marketing projections we need to calculate the breakeven point and assess ... View the full answer