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Business, 10.09.2019 17:30 stevewu168168

Max leonard, vice president of marketing for dysk computer, inc., must decide whether to introduce a mid-priced version of the firm's dc6900 minicomputer product line-the dc6900-x minicomputer. the dc6900-x would sell for $3,900, with unit variable costs of $1,800. projections made by an independent marketing research firm indicate that the dc6900-x would achieve a sales volume of 500,000 units next year, in its first year of commercialization. one-half of the first year's volume would come from competitors' minicomputers and market growth. however, a consumer research study indicates that 30 percent of the dc6900-x sales volume would come from the higher-priced dc6900-omega minicomputer, which sells for $5,900 (with unit variable costs of $2,200). another 20 percent of the dc6900-x sales volume would come from the economy-priced dc6900-alpha minicomputer priced at $2,500 (with unit variable costs of $1,200). the dc6900-omega unit volume is expected to be 400,000 units next year, and the dc6900-alplia is expected to achieve a 600,000-unit sales level. the fixed costs of launching the dc6900-x have been forecast to be $2 million during the first year of commercialization. if mr. leonard introduces the dc6900-x, what will be the total first-year change in profits for the firm?

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