80.2K

Verified Solution

Link Copied!

Calculate the pay-offs(profits) when each firm charges $399, Microsoft charges $399, but Sony charges a lower price of $299, when Sony charges $399 and Microsoft charges $299, and both charge $299, In other words, fill out the pay-offs in each of the four quadrants. habitle Prices and projected manual sales volumes for Sony PlayStation 3 and Microsoft Xbox 360 Elite Spice $299 299 399 399 Xhens 1299 199 299 199 PS3 projected number of Xbox projected amber units old millions hof units sold million) 1125 11.25 11.75 . 25 125 8.75 0.25 Exhibit 2: Sony PlayStation 3 Production Costs per unit in dollars Units produced in 25 2.75 10.25 10.75 11.25 11.75 12.25 12.75 Million Production 9 30 Labor 67 ss 145 32 bs 26 Materials 16 161 135 145 Parts 141 140 140 141 1142 Overhead 66.67 2.36 19.46 56.41 5.66 51.16 18.99 4611 4460 143.14 Distribution 40 40 0 40 140 40 140 30 30 130 Per Unit Total Cost 372.67 143.86 21.46 296.41 281.66 270.16 0.89 44.81 241.90041.14 Exhibit 3: Microsoft Xbox 360 Elite Production Cost per unit in dollars Unit produced 17.00 Millions) ko X 50 9.00 50 10.00 11.00 11.50 12.00 12.50 78 $ 46 F Production 2 so 52 44 Labor 44 44 Materials 150 Purts 172 1167 161 156 133 146 145 144 144 Overhead 4.29 0.00625 32.94 $0.00 1737 145.00 40.91 119.13 5250 36.00 Dribution so so so 40 40 40 100 40 30 so 130 Per Unit Total Cost 972 29 31.00 35.25 909 94 295.00 288.37 80.00 270.91 258.13 25.50 254.00 1

Answer & Explanation Solved by verified expert

See Answer