Roadside Inc's new product would sell for $35.76. Variable cost of production would be $13.48 per unit. Setting up production would entail relevant fixed costs of $260,683. The project cannot go forward unless the new product would earn a return on sales of 16%. Calculate breakeven sales in UNITS, meeting the profit target. (Rounding: tenth of a unit.)
Roadside Inc's new product would sell for $35.76. Variable cost of production would be $13.48 per unit. Setting up production would entail relevant fixed costs of $260,683. The project cannot go forward unless the new product would earn a return on sales of 16%. Calculate breakeven sales in UNITS, meeting the profit target. (Rounding: tenth of a unit.)
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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Roadside Inc's new product would sell for $35.76. Variable cost of production would be $13.48 per unit. Setting up production would entail relevant fixed costs of $260,683. The project cannot go forward unless the new product would earn a return on sales of 16%. Calculate breakeven sales in UNITS, meeting the profit target. (Rounding: tenth of a unit.)
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