Touché toiletries, inc., has developed an addition to its lizardman cologne line tentatively branded ode d’toade cologne. unit variable costs are 45 cents for a three-ounce bottle, and heavy advertising expenditures in the first year would result in total fixed costs of $900,000. ode d’toade cologne is priced at $7.50 for a three-ounce bottle. how many bottles of ode d’toade must be sold to break even

Number of bottle = 127,660

Explanation:

When facing with this kind of break-even exercise, keep in mind that break-even point is achieved when sales is just enough to cover all related operating cost. Let formulate the problem as below:

Number of bottle x Selling price per bottle -  Number of bottle x Varibale cost per bottle - Total fixed cost = 0

Putting all the number together, we have

Number of bottle x 7.5 -  Number of bottle x 0.45 - 900,000 = 0.

Solve the equation, we have   Number of bottle = 127,660

support your answer using the data presented. (5 points). 4. based on the information you used to schedule and curve, which product would you recommend the shoe hut focus on, and why? provide details that support your answer. (5 points).

answer; ///(c) i believe its it ignores cash flows following the payback period;