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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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