Titusberry Inc is considering the introduction of a new product Based on past experience, management believes that the distribution of sales demand is normal Management 's best guess is that the company will be able to sell 50,000 units of the new product in the first year, and management is 50 con...

1 2 193750 fixed cost5 Cm per unit 38750 units to breakeven The probability of making a prof ...

Titusberry Inc. is considering the introduction of a new product. Based on past experience, management believes that

Question:

Titusberry Inc. is considering the introduction of a new product. Based on past experience, management believes that the of sales demand is normal. Management's best guess is that the company will be able to sell 50,000 units of the new product in the first year, and management is 50% confident that first-year sales will be between 45,000 and 55,000 units. The from the sale of each unit is $5. Special machinery must be rented at an annual cost of $193,750 to manufacture the new product.
Required:
(1) Determine the expected standard deviation. (The interval between the mean and x that includes 25% of the area under the normal curve is .667 standard deviations.)
(2) What is the probability that the company will make a profit on the sale of the new product? Round the answer to the nearest whole percent. Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...