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Campbell s is preparing for the launch of a new product. They have decided to offer a vegan, gluten - free version of their popular
Campbells is preparing for the launch of a new product. They have decided to offer a vegan, glutenfree version of their popular SpaghettiOs product to capture more sales in the marketplace. By using their strong brand name, they believe they can increase their market share substantially. The costs allocated to this new product are as follows: The advertising budget is $ The cans cost $ each The contents and packaging cost $ per unit The salary of the new product team totals $ The direct labor is allocated at $ per unit A slotting allowance of $ The shipping and insurance are $ per unit The factory remodel to ensure the new product is vegan and glutenfree totals $ Campbells plans to use its existing distribution channel, which involves both wholesalers and retailers. The existing Margin on Selling Price is for wholesalers and for retailers. Campbells has decided to sell the soup for $ to its intermediaries
What are the fixed costs and variable costs of this new product? List them and provide the final amount for each. Assuming that units are sold, calculate the total costs.
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