Price of the current product named product awesome

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Reference no: EM13820919

Prices are increasing. Instead of increasing the price of the current product named "Product Awesome", the plan is to put the same product in a new box and call it "Super Awesome". The new container will be introduced by a television program. Current sales are 1,000,000 boxes a year at $1 per box. Fixed costs are $300,000 and variable costs are $0.60 per unit. It's anticipated that neither the sales volume nor variable costs will increase, however the television program will double fixed costs.

1) If the new price is $1.29 per box, what is the next break-even point?

(Please show step by step computation)

2) How many boxes above present sales would have to be sold under the "old product plus pesuasion" plan to double the present profit?

(Please show step by step computation)

Reference no: EM13820919

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