. MyAppliance+ is adding a new wine cooler to its appliance product mix. To impl

Question

. MyAppliance+ is adding a new wine cooler to its appliance product mix. To implement the new cooler it will have a fixed cost of $300,000 but the selling price is $150.00 with a variable cost of $89.99. MyAppliance+ wants to make at least $60,000 of profit the first year with this new product. How many wine coolers does the company have to sell to reach this profit goal? ___________________5 pts Show your calculations for each problem. If I do not see the calculations, then I will not give credit. These can be typed on this form.

Explanation / Answer

Required number of coolers = (Fixed cost + Target profit) / (Selling price - Unit variable cost)

= $(300,000 + 60,000) / $(150 - 89.99) = $360,000 / $60.01

= 5,999 units

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