Question

1-C) If Sound Systems Inc. were to spend an additional $1 million on advertising (i.e., on top of the amount specified in #1), how many additional units would it have to sell to break even? Show your work. 2.5 pts

here's the question from #1 and solution

1-A) Sound Systems Inc.produces and markets wireless speakers. Management is thinking about developing a new model, the SonicBoom. TheSonicBoomwill cost approximately $59 per unit to produce, and will be sold to retailers (such as Fry’sand Best Buy) at a price of $119, with a suggested retail price (i.e., the amount charged by retailers to consumers) of $239.  Sound Systems Inc.estimates that it will incur annual costs of $7.5 million to advertise and promote the SonicBoom, $2.5 million to cover selling and distribution expenses, and another $2.5 million to cover fixed overhead expenses. Based on this information, how many units does Sound Systems Inc.need to sell in order to break even?

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Answer 1