If we reduce the anticipated selling price by 10%, we can generate sales of 1,500,000 video games. Although it will increase the cost, we should reward our sales associates with

If we reduce the anticipated selling price by 10%, we can generate sales of 1,500,000 video games. Although it will increase the cost, we should reward our sales associates with a $3 sales commission for each unit sold. Also, let’s find a way to reduce the production cost to $8,000,000. Transcribed Image Text: Break-even analysis
Aquarius Games Inc. has finished a new video game, Triathlon Challenge. Management is now
considering its marketing strategies. The following information is available:
Anticipated sales price per unit
Variable cost per unit”
$75
$45
Anticipated sales volume in units
800,000
Production costs
$9,000,000
Anticipated advertising costs
$15,000,000
*The video game, packaging, and copying costs. Transcribed Image Text: Show your work
Sally’s Strategy
Sales
Variable
Cost
Contribution
Margin
Fixed
Cost
Income from
Operations

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