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Edwards Life Sciences is trying to decide if it should sell a new type of medical product. Fixed costs associated to the production of the product are estimated to be $30,000. The product will sell for $1,500 with variable cost of $1,000. The sales manager believes that sales will be normally distributed with an average of 100 annually, with a standard deviation of 35.
a) What is the breakeven point?
b) What is the probability of a loss?
c) What is the profit/loss when 120 units are sold?
d) How many units must be sold to earn a profit of $15,000?
e) What is the probability of a profit of $15,000 or more?
Posted Date: 1/8/2013 11:59:31 AM | Location : United States
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