Nintendo, 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 $500,000. Game-1 Game-2 Game-3 Game-4 Selling price $50 $45 $30 $20 Variable cost per unit $20 $15 $10 $10 A marketing research study predicts that for each units sold for Game-4, 1.5 units of Game-3, 3 units of Game-2 and 4 units of Game-1 will be sold. 1. How many products mix units must be sold to break even? 2. How does this translates into sale of individual units?
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