Bus599 Slp4 Hnolefoods

The idea here was to achieve market saturation as quickly as possible and reap the associated profit. Based on the life cycle of the X6, the price was increased by only five dollars per year and associated R&D expenses were reduced only 5% in the latter years. Finally, the X7 has the exact same fixed cost as the X6 with the only difference being the dollars allocated for the R&D, which for the second run of the simulation was $49.5 million. However, the variable costs for the X7 are extremely low at only $55 per tablet. The breakeven volume for the X7 at $120 per tablet comes out to just under 577,000 tablets. The strategy here was to have a much lower initial price in an attempt to capture market share and volume upfront which would ultimately reap large profits after the breakeven point.
Formulating a revised strategy Considering all of this information, the revised strategy will be somewhat similar from the previous one in regards to the overall conceptual plan. My previous strategy focused on CVP analysis, while the newer revised strategy for the tablet simulation will attempt to tweak and optimize this strategy further. Due to the lower breakeven prices of each of the tablets, volume for each one can be increased immediately by a reduction in price. Therefore we will attempt this for the X6 and X7 tablets. CVP does not account for product lifecycle, however, which is why my