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A sale price of $100 per unit is expected and the variable expenses will amount to 40% of sales revenue. Fixed cash operating expenses will
A sale price of $100 per unit is expected and the variable expenses will amount to 40% of sales revenue. Fixed cash operating expenses will amount to $1,600,000 per year. Additionally, an extensive advertising campaign will be launched, which will need annual expenses as follows:
A. Year 1 $3,000,000
B. Year 2 $1,500,000
C. Years 3-5 $1,000,000
D. Years 6-8 $400,000
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