Merowak Missiles has developed its Democratizer Offensive Weapon System (DOWS) for the US military. After sinking $1 billion into R&D and design, it spent $0.5 billion building the tools and production facility that are unique to DOWS production. It houses these in standard factory floor space that costs $1 million. Each missile has a marginal cost of $2,000. The Pentagon is thinking of discontinuing the program because the missiles are too expensive. If Merowak were to get an order for 50,000 missiles, what would its breakeven price be?

Other questions in category

• Since converting the firm's inventory to profits is a key function of management, firms use ______ t...
• 2) Can a caterer use leftover foods donated to a charity as a charitable tax deduction? Why or why n...
• If marginal cost exceeds average variable cost but is less than average total cost, then as output i...
• assume that the firm is hiring labor in a purely competitive market. if the wage rate is $11, how ma...
• How much interest is earned in just the 2nd year on a $1,000 deposit that earns 7% interest compound...
• What agricultural product provides florida with its state flower?...
• a comprehensive performance measurement tool that reflects the measures critical to the success of t...
• mr. wilson is a professor of marketing at the local university. in the student orientation program, ...
• A sales agent, employed by the sponsor's first-tier, downstream, or related entity (fdr), submitted ...
• Which analyst position analyzes information using mathematical models to help business managers make...