The Product Is Projected To Sell At 5 Per Unit And Has A Fixed Production Cost O
The product is projected to sell at $5 per unit and has a fixed production cost of $3.25 per unit. The cost of this new production line is $1.5 M.Given an estimate of selling 750,000 units per year at $5/unit, 600,000 unit/year at $6/unit and $450,000 units per year at $7/unit, what would you charge this product in order to recoup production line costs in the first year(use break even analysis)
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