Answer to Question #11687 in Economics of Enterprise for javier

The XYZ Company has just gathered estimates for making a business analysis of a new product. Variable costs are constant at $5 a unit; additional plants will be obtained at a cost of $28,000 and depreciated over four years; the new product will be charged $14,000 a year for its share of general overhead; the marketing program calls for an annual advertising expenditure of $15,000 on advertising, $20,000 on distribution, and a price of $9. The firm will have to be able to sell how many units to break even.