The sale price necessary to break even within two years

Reference no: EM13338052

Assume that the following data has been determined for thedevelopment and sale of a new digital thermometer for home use.

Development cost = $250,000
Production investment = $500,000
Sales volume = 20,000 units per year
Sales lifetime = 7 years
Production costs per unit = $5

Determine:

(a) The sale price necessary to break even within twoyears.

(b) The profit expected over the estimated saleslifetime

Reference no: EM13338052

Questions Cloud

What is the utilization of the bartender : Bartender at resort can serve drinks at the rate of one every50 seconds. During a hot evening recently, the bar wasparticularly busy and every 55 seconds someone was at the barasking for a drink.

Between the lower specificication limit and the target : An industrial sewing machines uses all bearing that aretargeted to have a diameter of 0.75 inch. The lower and upperspecification limits under which the ball bearing can be operatedaare 0.74 inch and 0.76 inch.

A good tool for learning about american politics : A good tool for learning about American politics.

The maximum manufacturing cost of each product : Multilevel car parks are usually constructed to minimize the spacethat cannot be directly used for parking. Thus, they have lowceilings, are typically very crammed with cars, and the visibilityis very low.

The sale price necessary to break even within two years : Assume that the following data has been determined for thedevelopment and sale of a new digital thermometer for home use.

The dna sequence of a gene encoding a hypothetica : The following amino acid sequence was derived from the DNA sequence of a gene encoding a hypothetical type I integral plasma membrane protein. (The • merely indicate every 10 amino acids beginning with M1 & ending with V140). Use this informat..

New paradigm of social health care for an aging society : 1. What are some of the problems identified in ensuring patients' access to and use of hospice care in the US? What would we need to do in order to have hospice become a potentially new paradigm of social health care for an aging society?

A research paper on autoimmune disease : Your final project in Unit 9 is a research paper on autoimmune disease or an immunodeficiency not covered in class. For your Unit 7 assignment, you will begin your final project by gathering some preliminary information regarding your project and

Define the principles of evolution : Pretend you are hiking down through the Grand Canyon or another area rich in fossils. How do the fossils you see provide evidence for Darwin's idea of "descent with modification", or evolutionary theory? In your response, be sure to define the..

User Account

All Pages