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After developing a Prime Model, your manager is uncertain about some of the assumptions and inputs used for the Prime model Annual demand per Customer
After developing a Prime Model, your manager is uncertain about some of the assumptions and inputs used for the Prime model
Annual demand per Customer of 100 units
Average order size of 10 units
Fixed shipping cost is $5.00
Variable shipping cost is $1.00
- Total Market Size 100,000,000
A) How do changes in the inputs above impact profitability?
B) Explain how and why each of these inputs is likely to change?
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