Math, asked by WaleedAnsari, 7 months ago

A leading manufacturer of video games is about to introduce four new games. The accompanying table

summarizes price and cost data, Combined fixed costs equal $600,000. A marketing research study predicts that

for each unit sold of Diablo, 2 units of Call of Duty: Modern Warfare, 3 units of Sekiro and 4 units of Starcraft II

will be sold.

Answers

Answered by amitnrw
0

Given : A leading manufacturer of video games is about to introduce four new games.  price and cost data

To Find :  How many product mix units must be sold to break even? b) How does it translate into sales of individual games?

Solution:

Game             Selling price     Variable Cost       Profit $

Diablo                   55                  22                       33

Call of Duty          48                   17                         31

Sekiro                   33                   12                         21

Starcraft II             22                   11                          11

Let say unit sold of Diabolo = x

Then Call of Duty = 2x

Sekiro = 3x

Starcraft II    = 4x

Total units sold = 10x

Profit =   33x  + 31(2x) + 21(3x) + 11(4x)  - Fixed Cost

= 33x + 62x + 63x  + 44x  - 600000

= 202x - 600000

For break even : 202x  = 600000

=> x = 2,970.3  ≈ 2,971.

=> 10x = 29703 ≈ 29710

unit sold of Diabolo = 2971

Then Call of Duty = 5942

Sekiro = 8913

Starcraft II    = 11884

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Answered by jamalkhanbarrawal
0

A leading manufacturer of video games is about to introduce four new games. The accompanying table summarizes price and cost data, Combined fixed costs equal $600,000. A marketing research study predicts that for each unit sold of Diablo, 2 units of Call of Duty: Modern Warfare, 3 units of Sekiro and 4 units of Starcraft II will be sold.

Games

Diablo

Call of Duty

Sekiro

Starcraft II

Selling Price (in dollars)

55

48

33

22

Variable cost/unit (in dollars)

22

17

12

11

How many product mix units must be sold to break even?

How does it translate into sales of individual games

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