Bazooka Company Is Thinking About Introducing a New Type of Color

question 3

Essay

Bazooka Company is thinking about introducing a new type of color printer. If they introduce it, their factory will incur additional fixed costs of $37,000,000 per year. The variable costs will be $261 per printer.
a) If Bazooka sells the new printer for $819, how many must they sell to break even?
b) If Bazooka sells 70,000 of the new printer at the $819 price, what will the contribution to profit be?

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Definitions:

Emotional Markers

Emotional responses or cues that signal significant psychological events or changes, often indicating underlying emotional states or conditions.

Empty-Chair Dialogue

A gestalt therapy technique in which clients engage in a conversation with an imaginary person or part of themselves sitting in an empty chair, to explore different aspects of their psychology.

Real Feelings

Genuine emotions that an individual experiences, often contrasted with suppressed or socially conditioned responses.

Gestalt Therapy

An approach in mental health counseling that underlines personal accountability and zeroes in on the present moment experiences of the person seeking help, the rapport between therapist and client, the influence of social and environmental factors on an individual's life, and the personal modifications made in response to their broader context.