Touché Toiletries, Inc. has developed an addition to its Lizardman Cologne line tentatively branded Ode d’Toade Cologne. Unit variable costs are 45 cents for a three-ounce bottle, and heavy advertising expenditures in the first year would result in total fixed costs of $900,000. Ode d’Toade Cologne is priced at $7.50 for a three-ounce bottle. How many bottles of Ode d’Toade must be sold to break even?
Touché Toiletries, Inc. has developed an addition to its Lizardman Cologne line tentatively branded Ode d’Toade Cologne. Unit variable costs are 45 cents for a three-ounce bottle, and heavy advertising expenditures in the first year would result in total fixed costs of $900,000. Ode d’Toade Cologne is priced at $7.50 for a three-ounce bottle. How many bottles of Ode d’Toade must be sold to break even?
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SA
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Touché Toiletries, Inc. has developed an addition
to its Lizardman Cologne line tentatively branded
Ode d’Toade Cologne. Unit variable costs are
45 cents for a three-ounce bottle, and heavy advertising expenditures in the first year would result in total fixed costs of $900,000. Ode d’Toade
Cologne is priced at $7.50 for a three-ounce bottle. How many bottles of Ode d’Toade must be sold to break even?
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