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Calculate break-even time for the new product

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Rochester Rockets Ltd. plans to introduce a new model of hobby rocket. After extensive discussions with engineering, manufacturing, and marketing staff, the following information has been developed:

Quarter

1

2

3

4

5

6

7

8

Market research ($)

(10,000)

(20,000)

Product development ($)

(10,000)

(50,000)

(100,000)

(50,000)

Selling price/unit ($)

25

25

20

20

Variable costs/unit ($)

11

11

10

10

Sales quantity (units)

7,000

7,000

8,000

8,000

Other fixed costs ($)

(10,000)

(10,000)

(10,000)

(10,000)

Required: Calculate break-even time for the new product.

Reference no: EM131774726

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