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Bindle-Featherston Company has a new product. It estimates that first year sales will result in 150,000 units sold and a growth rate of 12% per
Bindle-Featherston Company has a new product. It estimates that first year sales will result in 150,000 units sold and a growth rate of 12% per year. The sales price is $25 per unit and will increase by 5% per year. The fixed costs are $200,000 per every 100,000 units and variable costs are $10 per unit. Variable costs will increase by 3% per year due to increased material and labor costs. What is the total profit expected over the next five years if the sales growth rate is 15% instead? Multiple Choice O $14.525.656.33 O $14.031.510.54 O $15,093,381.95 O $11,893.906.56
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