Part – A: A Leading manufacturer of Action Figures is about to introduce four new Action Figures. The accompanying table summarizes price and cost data, combined fixed costs equal $75,000. A marketing research study predicts that for each unit sold of Noyan, 2 units of Dogan, 5 units of Bamsi and 4 units of Turgut will be sold.         Action Figures   Turgut Bamsi Dogan Noyan Selling Price (in dollars) 32 27 25 15 Variable Cost/unit (in dollars) 16 13 11 11 Table 1 How many product mix units must be sold to break even? How does it translate into sales of individual games?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter11: Price And Output Determination: Monopoly And Dominant Firms
Section: Chapter Questions
Problem 6E
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Part – A:

A Leading manufacturer of Action Figures is about to introduce four new Action Figures. The accompanying table summarizes price and cost data, combined fixed costs equal $75,000. A marketing research study predicts that for each unit sold of Noyan, 2 units of Dogan, 5 units of Bamsi and 4 units of Turgut will be sold.

 

 

 

 

Action Figures

 

Turgut

Bamsi

Dogan

Noyan

Selling Price (in dollars)

32

27

25

15

Variable Cost/unit (in dollars)

16

13

11

11

Table 1

  1. How many product mix units must be sold to break even?
  2. How does it translate into sales of individual games?
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