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A manufacturer is planning on introducing a new item to its product mix. The following information is based on the firm's projections about costs, margins,

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A manufacturer is planning on introducing a new item to its product mix. The following information is based on the firm's projections about costs, margins, selling price and certain other goals: - The retail price (price to end users) will be $16. - Retailers will earn a margin of 35%. - Wholesalers will carn a margin of 15%. - Manufacturing fixed costs associated with the product will be $850,000. - Marketing costs for the manufacturer are budgeted at 7% of sales. - The total market for products such as this is 2,400,000 units. - Variable cost of production per unit is $4.50. You are the CMO for this company and have been offered the following options regarding your annual bonus: - You will receive your bonus when you reach a profit goal of 10%. - You will receive your bonus when you have generated $200,000 in profits. Considering these options, which would you select and why? Show all calculations that were used in determining your choice

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