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A company is planning a new product. Market research information suggests that the new product will sell 1 0 , 0 0 0 total units
A company is planning a new product. Market research information suggests that the new product will sell total units at a price of $ per unit. The company estimates the lifetime costs of the product as follows: The company estimates that if it were to spend an additional $ on design, then manufacturing costs could be reduced. a What is the target cost of the product if the company seeks a markup of of product Round answer to two decimal places. $ Given the target cost, would you expect the company to launch the product? b What is the maximum allowable product manufacturing cost per unit if the company seeks a markup of of the original lifecycle cost? Round answer to two decimal places. Using the total lifecycle cost to determine target product cost, would you expect the company to launch the product? c Assume the additional $ was spent on design. By how much would the design changes need to reduce the per unit product cost to meet the goal of a markup on total lifecycle costs? Round answer to two decimal places. $
A company is planning a new product. Market research information suggests that the new product
will sell total units at a price of $ per unit. The company estimates the lifetime costs of
the product as follows:
The company estimates that if it were to spend an additional $ on design, then manufacturing
costs could be reduced.
a What is the target cost of the product if the company seeks a markup of of product
Round answer to two decimal places. $
Given the target cost, would you expect the company to launch the product?
b What is the maximum allowable product manufacturing cost per unit if the company seeks a
markup of of the original lifecycle cost?
Round answer to two decimal places.
Using the total lifecycle cost to determine target product cost, would you expect the company
to launch the product?
c Assume the additional $ was spent on design. By how much would the design changes
need to reduce the per unit product cost to meet the goal of a markup on total
lifecycle costs?
Round answer to two decimal places. $
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