Model of portable music players

Assignment Help Business Management
Reference no: EM131535806

Avian Electronics, Inc. manufactures a model of portable music players that can play music downloaded from the Internet. It is considering adding a more advanced model of the product that can also download and play video files as well as music files. Avian's variable costs and prices to wholesalers are:

Current Audio model

New Audio/Video model

Unit selling price

$150.00

$250.00

Unit variable costs

$60.00

$120.00

The company expects to sell 2 million units of the new audio/video model in the first year after introduction, but it expects that half of those sales will come from buyers who would have purchased Avian's current audio model. Avian estimates that it would sell 2.5 million units of the current audio model if it did not introduce the audio/video model. If the fixed cost of launching the new audio/video model will be $800,000 during the first year, should Avian add the new model? Why or why not?

Reference no: EM131535806

Questions Cloud

Empowerment and employing fewer levels of management : Given the current trends toward empowerment and employing fewer levels of management
Formulate the problem in linear programming : Formulate the problem in linear programming - Determine the optimal solution through the 3 methods studied.
Acquisition steps using the systems development lifecycle : Generate one diagram that you would use in an executive meeting to show your IT acquisition steps using the Systems Development Lifecycle (SDLC).
What is the code for green blazer seats : What is the code for Green Blazer Seats? My identifier is 017.
Model of portable music players : Avian Electronics, Inc. manufactures a model of portable music players that can play music downloaded from the Internet.
Expenses for the marketing function : Other costs include $2 million for managerial salaries and expenses for the marketing function and another $3 million for indirect overhead allocated.
What is the purpose of the wto and g-eight : What is the purpose of the WTO and G8? Do you believe they are beneficial to Multi-National Companies (MNCs)?
What is company cost of equity capital : Assume the risk-free rate is 5.4 percent and the expected return on the market is 12.9 percent. What is the company’s cost of equity capital?
By how much will the portfolio beta change : By how much will the portfolio beta change? Do not round your intermediate calculations.

Reviews

Write a Review

Business Management Questions & Answers

  Principles underpinning the skills development act

Examine the principles underpinning the Skills Development Act and Skills Development Levies Act and discuss the implication of this for human resource planning in your organisation.

  Discussion board question for week

Part I: Write your own discussion board question for this week. Get creative! Your question should lead to an open discussion with your classmates. Give them something to think about.

  Case study on winfield refuse management

1. Provide an overview (synopsis) of the case. This is the case introduction that provides relevant background information (case situation).Case study Winfield Refuse Management Case Study.

  Tiebout model of local public good provision

Explain why, in the Tiebout model of local public good provision, efficiency will not be achieved if there are externalities across city borders from the public

  Milton owns a business delivering coffee as well as donuts

Milton owns a business delivering coffee as well as donuts within the downtown area of the city. Smith Co. calls him to distribute a large quantity of his products to their local office

  Use of leadership and audience outreach techniques

Explain how the use of leadership and audience outreach techniques used in the communication were appropriate or inappropriate and explain their effectiveness.

  Why do you think employees react in the given way

Why do you think employees react in this way? What can leaders do to avoid this skeptical reaction on the part of employees and ensure that the new vision/mission is embraced?

  Identify an organizational structure for your company

Identify an organizational structure for your company. Choose from functional, divisional, matrix, and geographic structures. Articulate two reasons why this structure fits the goals and focus of your company.

  How many of the team members participated actively

How many of the team members participated actively in the discussion forum or other means of communication used at least 3 times per week?

  Case study - fire in a bangladesh garment

case study - fire in a bangladesh garment factory.instructions continued- what would you advise your staff to do when

  Describe three key inputs

Describe three key inputs (or factors of production) and fixed and variable costs involved in the production of your chosen product or service.

  Configure performance monitor

To configure performance monitor efficiently, it takes some understanding. What resources do you have available to you to learn more about the tool?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd