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Akeem Kemmer MD

Feb 20, 2025

1. Max Leonard, vice president of Marketing for Dysk Computer, Inc must decide whether to introduce a mid-priced version of the firm’s

1. Max Leonard, vice president of Marketing for Dysk Computer, Inc must decide whether to introduce a mid-priced version of the firm's DC 6900 personal computer product line - the DC 6900-X. The DC6900-X would sell for $5,000, with unit variable costs of $1,750. Projections made by an independent marketing research firm indicate that the DC6900-X would achieve a sales volume of 50,000 units next year, in its first year of commercialization. One-half of the first year's volume would come from competitors' personal computers and market growth. However, a consumer research study indicates that 30 percent of the DC6900-X sales volume would come from the higher-priced DC6900-0mega personal computer, which sells for $4,000 (with unit variable costs of $2,000). Another 20 percent of the DC6900-X sales volume would come from the economy-priced DC6900-Alpha personal computer, priced at $2,500 (with unit variable costs of$ 1,250). The DC6900-0mega unit volume is expected to be 40,000 units next year, and the DC6900-Alpha is expected to achieve a 60,000-unit sales level. The fixed costs of launching the DC6900-X have been forecast to be $1 million during the first year of commercialization. Should Mr. Leonard add the DC6900-X model to the line of personal computers
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