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

• when merchandise is shipped f.o.b. destination, who includes the inventory on their balance sheet wh...
• 4.IExpress algebraically; 12% commission on the profit when
• The sales and cost data for two companies in the transportation industry are as follows:...
• Which document needs to be submitted, along with reconciled cash, from each department to the main c...
• which statement accurately depicts how volatile exchange rates affect the international capital mark...
• Diane Bernick opened Bernick's Consulting. Transactions for the month of January and trial balance a...
• What are the advantages of picking fruits safely from the tree...
• How much interest is earned in just the 2nd year on a $1,000 deposit that earns 7% interest compound...
• Match the following government organizations with their healthcare and/or health information technol...
• when governments intervene in markets — end of chapter problem the u.s. government provides subsidie...