An air-conditioning manufacturer has spent $1,500,000 on developing a new ductless AC system. ❑ The estimated...
An air-conditioning manufacturer has spent $1,500,000 on developing a new ductless AC system.
❑ The estimated market size for the ductless AC systems is 26,000 units in 2017, and is expected to grow at an annual rate of 10% over the next 4 years.
❑ The firm predicts that with this new product, it will obtain a market share of 3% in 2017, 5% in 2018, 10% in 2019, and 15% in 2020.
❑ The variable cost of manufacturing each unit is $250.
❑Compute the cost-based price for this new system, if target profit after 4 years is $500,000.
Homework Answers
Summary of answer
Total 10,547 units sold
Sale price (x) = $ 439.63 per unit
Detailed working attached below. Please refer
Thanks
![2020 Lloy 9 - th] 34606 x 15. = 5191 [ 31460X16). +314607 Note 2: Calculation of variable cost Total Variable Cost - Sales un](http://img.homeworklib.com/questions/0208ae80-75b1-11ea-a375-d1e7fc8d4e5a.png?x-oss-process=image/resize,w_560)
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