Question

Video Games 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. A marketing research study predicts that for each unit sold of Black Hole, 1.5 units of Haley's Comet, 3 units of Astervoids, and 4 units of PacPerson will be sold. (a) How many product mix units must be sold to break even? (b) How does this translate into sales of individual games? Game Haley's Comet Black Hole PacPerson $50 20 Astervolds $45 15 Selling price Variable cost/unit $30 $20 10 10​

Answer 1

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