Question

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?1-B) If Sound Systems Inc. sells 300,000 units of the SonicBoom in a given year how much profit (or loss) would it realize? Show your work. 2.5 pts

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1-B)IfSound Systems Inc.sells 300,000 units of the SonicBoomin a given year how much profit (or loss) would it realize? Show your work. 2.5 pts

Answer 1