The ET students at SWOSU are launching a businessmanufacturing homework-completing robots. There are roughly $253.22in material costs for each robot (including waste), and the hope isto sell them at the bargain price of $399.99 each. Since they'reusing the facilities in the ET department, they aren't planning topurchase equipment until after they graduate (2 years from now).They expect to sell 23 robots each quarter until they graduate.Then, they'll invest $23,456.78 in equipment and facilities to growthe business on their own. Once they're running this full-time as abusiness they expect to be able to produce and sell at highervolumes, and the ongoing expenses (in addition to the materialcosts) for this phase of their business will be $1,234.56 permonth.
a) How much will they earn in profits over the next eightquarter while they are still students?
b) Draw the cash flow diagram for the next eight quarterswhile they are still students?
c) Staring with the period after they graduate, how manyrobots would they need to sell each quarter to break even withinthe first year?
d) Staring with the period after they graduate, how manyrobots would they need to sell each quarter to break even withinthe first two years?
e) Why are these numbers different?
f) Draw the cash flow diagram for part d
