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How many sensors of Flux will Ferris need to sell

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Problem - The Ferris Company is planning on launching a new product in the high tech market, Flux on Jan. 1st. They plan on pricing Flux at $44.00. The material cost is $19.00 and the labor is $10.00 per sensor. The total equipment to produce Flux costs $5,000,000. They are planning on having a promo budget of $1.5 M and a sales budget of $1.2M. Assuming there is no inventory carrying costs and no other fixed costs and that the equipment has no salvage value and is depreciated over 15 years, how many sensors of Flux, will Ferris need to sell to breakeven in the first year?

Reference no: EM133049194

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