The Precision Writing Instruments Company makes two pen designs - the Cordova design and the Savannah design. These data apply, regardless of which of two pen designs is being implemented. Materials cost per pen is $6. Labor cost per pen is $5. Production overhead is $1,000,000. Advertising and promotion is $1,000,000. Marketing research has estimated the following demand functions for the next year of sales for the two pen designs where Q represents demand in thousands and P represents price. For the Cordova design, Q = 150 - 2.5P. For the Savannah design, Q = 175 - 2.1P. A penetration strategy is proposed for the Savannah design and a price of $25 is selected. What will be the profit or loss for the first year?

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  loss of $285,000

Step-by-step explanation:

The demand for the Savannah design is estimated to be ...

  Q = 175 -2.1P = 175 -2.1(25) = 122.5 . . . . thousand pens

Then the contribution margin from sales will be ...

  122,500($25 -$6 -$5) = $1,715,000

Against a total of $2,000,000 in production and advertising costs, the net will be a loss of ...

  $2,000,000 -1,715,000 = $285,000

The first-year loss will be $285,000.

dwe

step-by-step explanation:

ewd

15%

step-by-step explanation:

use the table and count the number of guesses that has two correct answers.

the following are two correct answers

10010, 01100, 11000

a total of 3 numbers having 2 correct guesses out of 20 questions.

probability of getting 2 correct guesses = the number of questions getting 2 correct answers / total number of questions.

= 3/20

to convert it into percent multiply by 100, we get

= 3/20 * 100

= 15%

the answer is 15%

you.