The product is projected to sell at 5 per unit what would


Question - The product is projected to sell at $5 per unit and has a fixed production cost of $3.25 per unit. The cost of this new production line is $1.5 M. Given an estimate of selling 750,000 units per year at $5/unit, 600,000 unit/year at $6/unit and $450,000 units per year at $7/unit, what would you charge this product in order to recoup production line costs in the first year(use break even analysis).

Solution Preview :

Prepared by a verified Expert
Accounting Basics: The product is projected to sell at 5 per unit what would
Reference No:- TGS02574371

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)