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What are possible alternative actions that sony could take

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Reference no: EM132539811

Sony TV is performing a cost-volume-profit analysis for a new high definition television.

The following facts are available:

Average selling price per TV?? $2,500

Average variable cost per TV ? $1,500

Fixed cost per year ??? $25,000,000

Tax rate ????? 30%

Required

Question a) On average how many TVs per year would Sony have to sell in order to breakeven?

Question b) If the breakeven point was higher than the number of units that might be able to be sold, what are the possible alternative actions that Sony could take?

Question c) What would Sony's net income (loss) be if they sold 20,000 TVs?

Reference no: EM132539811

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