Marketing: The Core 4th Edition by Roger Kerin, Steven Hartley, William Rudelius, Erin Steffes

Exercise 12

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