WebTech Associates of Winnipeg, MB, is considering the possible introduction of a new product proposed by its research and development staff. The firm's marketing director estimates that the product can be marketed at a price of $85. Total fixed cost is $310,000, and average variable cost is calculated at $38.
A) What is Break Even Analysis mean? 5 Marks
B) What is the breakeven point in units for the proposed product? 5 marks
C) The firm's president has suggested a target profit return of $250,000 for the proposed product. How many units must be sold to both break even and achieve this target return? 5 Marks