Company Capacity Is 1 Million Units Per Year for a New

question 78

Essay

Company capacity is 1 million units per year for a new food product.The sales force can sell 5 million units over a 5-year period,but only 100,000 in the first year.The breakeven volume is VBEP = 50,000 units with p = 3,vc = 2,and FC = 50,000.What is the situation? What recommendations do you support?

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