Question

A Leading mobile phone manufacturer is about to introduce a new series, initially they are launching 4 models of the same series. The accompanying table summarizes price and cost data, combined fixed costs equal $650,000. A marketing research study predicts that for each unit sold of Infinity A Pro Max, 2 units of Infinity A Pro, 5 units of Infinity A and 3 units of Infinity A Lite will be sold. Models Infinity A Pro Max Infinity A Pro Infinity A Infinity A Lite Selling Price (in dollars) 500 400 280 180 Variable Cost/unit (in dollars) 380 270 180 100 Table 2 How many product mix units must be sold to break even? How does it translate into sales of individual Models?

Answer 1

Answer:

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