The new UltraGuard flea collar is about to be introduced to the market. It will be priced at $ 9.63 and has unit variable costs of $ 3.66. The company expects to sell 49,044 UltraGuard collars during the next six months. Some of the sales will come at the expense of the current product, the PetArmor collar, priced at $ 6.22 with variable costs of $ 3.04. Projected sales for the PetArmor collar are 95,000 units (without the introduction of the UltraGuard). The analyst estimates that the UltraGuard collar will cannibalize 19,948 PetArmor collars during the introductory 6 month period. The company is planning a sales promotion campaign to target veterinarians at the time of the new product launch. The company is going to invest $ 54,514 in printed materials and samples. Calculate the breakeven sales volume necessary to justify the promotional campaign. Round your answer to the nearest whole number. Your Answer:

The new UltraGuard flea collar is about to be introduced to the market. It will be priced at $ 9.63 and has unit variable costs of $ 3.66. The company expects to sell 49,044 UltraGuard collars during the next six months. Some of the sales will come at the expense of the current product, the PetArmor collar, priced at $ 6.22 with variable costs of $ 3.04. Projected sales for the PetArmor collar are 95,000 units (without the introduction of the UltraGuard). The analyst estimates that the UltraGuard collar will cannibalize 19,948 PetArmor collars during the introductory 6 month period. The company is planning a sales promotion campaign to target veterinarians at the time of the new product launch. The company is going to invest $ 54,514 in printed materials and samples. Calculate the breakeven sales volume necessary to justify the promotional campaign. Round your answer to the nearest whole number. Your Answer:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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