Explain making and marketing the new product, Operation Management

Assignment Help:

Mary Williams, owner of Williams Products, is evaluating whether to introduce a new product line. After thinking through the production process and the costs of raw materials and new equipment. Williams estimates the variable costs of each unit produced and sold at $6 and the fixed costs per year at $60,000

a. If the selling price is set at $18 each, how many units must be produced and sold for Williams to break even? Use both graphic and algebraic approach to get your answer.

b. Williams forecasts sales of 10,000 units for the first year if the selling price is set at $14.00 each. What would be the total contribution to profits from this new product during the first year?

c. If the selling price is set at $12.50, Williams forecasts that first-year sales would increase to 15,000 units. Which pricing strategy ($14.00 or $12.50) would result in the greater total contribution to profits?

d. What other considerations would be crucial to the final decision about making and marketing the new product?


Related Discussions:- Explain making and marketing the new product

Explain the standard working time, To determine the standard working time f...

To determine the standard working time for a special job, following observation data is collected. Observation 1 2 3 4 5 6 7 8 Time (in second) 17 18 15 14 13 15 16 13 a) If the pe

Explain what are three factors that affect capacity usage, What are three f...

What are three factors that affect capacity utilization? Provide examples.

Compute annual holding cost plus the annual ordering cost, The current orde...

The current order quantity for Paul's Pasta Pinwheels is 200 boxes. The order cost is $4 per order, the holding cost is $0.40 per box per year, and the annual demand is 500 boxes p

Explain dispute arises the hotel management, A famous New York City hotel, ...

A famous New York City hotel, Hotel Lux, is noted for its food as well as its luxury accommodations. Hotel Lux contracts with a famous chef, Chef Perlee, to become its head chef at

Explain how was your performance compared to the standards, Think of a clas...

Think of a class you've taken in the past. What standards of performance did your professor establish? How was your actual performance measured? How was your performance compared t

OPERATIONS RESEARCH, Discuss the methodology of operation research

Discuss the methodology of operation research

Management Techniques, Exercise 2: Use of a Grid Analysis (Weighted Scoring...

Exercise 2: Use of a Grid Analysis (Weighted Scoring Model) to Help Make the North American Plant Location Decision for the RX 330

Describe the terms entity and relationship, Explain the terms entity, relat...

Explain the terms entity, relationship, and attributes. Describe how they are used in a database.

Evidenced predictive capabilities of a leader, Question 1: Traits theor...

Question 1: Traits theories are not sufficient for explaining Leadership! i. Give an account of the other complementary Contingency theories or parts of the theories that d

Way for establishing whether disparate impact exists, One method for establ...

One method for establishing whether disparate impact exists in a company's hiring practices involves

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd