Mary williams, owner of williams products, is evaluating, Ask an Expert

Management Studies

Mary Williams, owner of Williams Products, is evaluating whether to introduce a new product line. After thinking through the production process and the costs of raw materials and new equipment. Williams estimates the variable costs of each unit produced and sold at $6 and the fixed costs per year at $60,000

a. If the selling price is set at $18 each, how many units must be produced and sold for Williams to break even? Use both graphic and algebraic approach to get your answer.

b. Williams forecasts sales of 10,000 units for the first year if the selling price is set at $14.00 each. What would be the total contribution to profits from this new product during the first year?

c. If the selling price is set at $12.50, Williams forecasts that first-year sales would increase to 15,000 units. Which pricing strategy ($14.00 or $12.50) would result in the greater total contribution to profits?

d. What other considerations would be crucial to the final decision about making and marketing the new product?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9687881

Have any Question?Write your Review or question?

Related Questions in Operation Management

1 go online and research a firm similar to kraft general

1. Go online and research a firm similar to Kraft, General Mills, Ford, or Burger King to find out what kinds of consumer-oriented promotions the company is conducting for its various brands or individual products. Which ...

Some states give consumers the right to cancel certain

Some states give consumers the right to cancel certain contracts for any reason within a short period of time after entering into them. For example, consumers in California can get out of gym membership contracts by send ...

Question what is one recent news story that you have found

Question : What is one recent news story that you have found illustrates the relationship between a business leader's role and the success or failure of his/her business? The response must be typed, single spaced, must b ...

Lauren becall is the top salesperson for mudge paper

Lauren Becall is the top salesperson for Mudge Paper Company. She also leads the sales team that supports Mudge's largest client, Bart's Office Supplies. Bart's is an international office supply chain that is growing rap ...

1 discuss how you would approach marketing a medical office

1. Discuss how you would approach marketing a medical office building versus marketing for retail tenants. 2. Compare and contrast the effectiveness of electronic marketing with other prospecting approaches such as open ...

We appreciate the need to have warehousingdistribution in

We appreciate the need to have warehousing/distribution in the supply chain. From your perspective, how can we best go about having these two aspects be carried out: stand alone, integrated, or semi-autonomous? Why do yo ...

Case in point newell rubbermaid leverages cost controls to

Case in Point: Newell Rubbermaid Leverages Cost Controls to Grow Newell Company grew to be a diversified manufacturer and marketer of simple household items, cookware, and hardware. In the early 1950s, Newell Company’s b ...

Case a team of marketing managers for a major

Case: A team of marketing managers for a major differentiated consumer products company has been instructed by top managers to develop new strategies to increase the profitability of the company’s products. One idea is t ...

1 describe talent management practices as a competitive

1. Describe talent management practices as a competitive advantage. (Possible topics include: succession planning; careers and career planning; human resources development; management development). 2. In the basic EOQ mo ...

Write requirements for a game note you are not writing out

Write Requirements For a Game. Note: You are NOT writing out the code. The Requirements should focus on what you want the game to do… think Shall Statements. If you had a developer working for you, how would you describe ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert