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Victor plans to set up an online business selling software applications that he develops and supports. He believes that a price of $130 for his product including the technical support would be competitive. His monthly fixed expenses amount to $850. Victor would hire some college students to provide the technical support of the application paying them for 3 hours at $15 per hour for each customer.
b. The competition has reduced its price on a similar TV to $275. J.W. Electronics is considering reducing its selling price to $275 to compete. Find the new break-even point if the sales price is reduced to $275. Show your calculations
c. Calculate the profit realized by J.W. Electronics on the sale of 1,500 TVs if it keeps its selling price at $300. Show your calculations.
d. How many more TVs (% increase) must J.W. Electronics sell to make a profit of $62,500 if it decides to reduce its sales price to $275? Show your calculations. Only list the incremental % increase in the final input cell.
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