Determine the break-even sales volume of the product

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Reference no: EM13108988

During the product development stage, a market survey indicated that the expected sales volume of product A will be 100,000 units per year at a price of $10. Per unit. The variable cost per unit will be $2. But the cost of product development will be $100,000. and the cost of sales advertisement (promotion) is expected to be $100,000. Then,
What is the break-even sales volume of the product A for the company?
BEP= (total fixed cost)/(price/unit)-(variable cost/unit) =
Will the company make any profit from selling 100,000 units of product A? If so , how much?
Profit = Revenue â€" total cost =

Reference no: EM13108988

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