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How many units of the new product must be sold to break even

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Question - A manufacturer is introducing a new product priced at $5 (MSP). The unit variable cost is $2 and advertising costs are $300,000. The new product will cannibalize an older product's sales by 20,000 units. The older product has a UC = $1.15. How many units of the new product must be sold to break even? What must the manufacturer's dollar sales volume be to break even?

Reference no: EM133068935

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