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LEGO is producing a new brick set and plan on selling it for $120. The fixed costs are $500,000 and variable costs are $80. This results in a break even point of 12500 sets. The mean number of sets sold is anticipated to be 15000 and the standard deviation of the distribution is 5000. They also believe the loss e below the breakeven is

LEGO is producing a new brick set and plan on selling it for $120. The fixed costs are $500,000 and variable costs are $80. This results in a break even point of 12500 sets. The mean number of sets sold is anticipated to be 15000 and the standard deviation of the distribution is 5000. They also believe the loss e below the breakeven is

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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LEGO is producing a new brick set and plan on selling it for $120. The fixed costs are $500,000 and variable costs are $80. This results in a break even point of 12500 sets. The mean number of sets sold is anticipated to be 15000 and the standard deviation of the distribution is 5000. They also believe the loss per unit when sales are below the break even is $50. Determine the following given the above scenario. Expected Monetary Value: $ 300000 D value for unit normal loss table: 0.810 N value from unit normal loss table 0.118 Expected Opportunity Loss: S5463805
Transcribed Image Text:LEGO is producing a new brick set and plan on selling it for $120. The fixed costs are $500,000 and variable costs are $80. This results in a break even point of 12500 sets. The mean number of sets sold is anticipated to be 15000 and the standard deviation of the distribution is 5000. They also believe the loss per unit when sales are below the break even is $50. Determine the following given the above scenario. Expected Monetary Value: $ 300000 D value for unit normal loss table: 0.810 N value from unit normal loss table 0.118 Expected Opportunity Loss: S5463805
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