A start-up company, Macrotech, plans to produce a device to translate Morse codeto a written message on a home computer and to send written messages in Morsecode over the airwaves. The device is primarily of interest to ham radio enthusiasts. The president, Ron Lodel, estimates that it would require a $30,000 initialinvestment. Each unit costs him $20 to produce and each sells for $85.a. How many units must be sold in order for the firm to recover its initialinvestment?b. What is the total revenue at the break-even volume?c. If the price were increased to $100 each, find the break-even volume.

A start-up company, Macrotech, plans to produce a device to translate Morse codeto a written message on a home computer and to send written messages in Morsecode over the airwaves. The device is primarily of interest to ham radio enthusiasts. The president, Ron Lodel, estimates that it would require a $30,000 initialinvestment. Each unit costs him $20 to produce and each sells for $85.a. How many units must be sold in order for the firm to recover its initialinvestment?b. What is the total revenue at the break-even volume?c. If the price were increased to $100 each, find the break-even volume.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 34P

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