LEGO is producing a new brick set and plan on selling it for $120. The fixed costs are $500,000 and variable costs are $80. This results in a break even point of 12500 sets. The mean number of sets sold is anticipated to be 15000 and the standard deviation of the distribution is 5000. They also believe the loss per unit when sales are below the break even is $50. Determine the following given the above scenario. Expected Monetary Value: $ 300000 X D value for unit normal loss table: 0.810 X N value from unit normal loss table: 0.118 X Expected Opportunity Loss: $54638.05

LEGO is producing a new brick set and plan on selling it for $120. The fixed costs are $500,000 and variable costs are $80. This results in a break even point of 12500 sets. The mean number of sets sold is anticipated to be 15000 and the standard deviation of the distribution is 5000. They also believe the loss per unit when sales are below the break even is $50. Determine the following given the above scenario. Expected Monetary Value: $ 300000 X D value for unit normal loss table: 0.810 X N value from unit normal loss table: 0.118 X Expected Opportunity Loss: $54638.05

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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