Doom Weapons Case: Manipulating Numbers
Future Industries' most promising upcoming product is the P1X Plasma Pistol due to launch next year. The company estimates that by launch, the total development costs for the pistol will have been $30 million. Each pistol will cost $1,000 to make and will sell for $2,000. To keep things simple, let’s assume that there are no costs for selling and marketing this product.
Future Industries' sales forecast for the P1X are shown here (click here to view Exhibit 1).
Question: In how many years after launch will Future Industries break-even on the P1X?
Answer: Click here to see a model answer (opens in a new window).