A start-up computer company is in the process of introducing their first line of computers. These computers are high in performance and ""radically slim"" in design but will cost the company only $1,000 to produce and ship each unit. The machines are sold to retailers for $1,500.

In addition to manufacturing the computers, the company has invested heavily in marketing the computer. They spend approximately $8,000,000 on marketing the first line computer. Excluding marketing, various fixed costs total 1.25 million dollars.