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A company is planning to launch a new product. It currently has four possible new products under consideration to invest in but it must select

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A company is planning to launch a new product. It currently has four possible new products under consideration to invest in but it must select one. It has estimated the following data: Product A B D Expected annual 500 700 850 1000 demand Unit cost of 700 900 1000 1200 production Unit selling price 900 1300 1400 1500 Fixed cost 150,000 350,000 450,000 550,000 incurred before production Expected product 2 years 2.5 years 3 years 3.25 years life in years On the basis that the main selection criterion is the product that offers the largest safety margin between break even quantity and expected product life select the safest product to invest in. Product D Product A Product C Product B

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