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- Current sales revenue for Product A: R2,000,000 - Current sales revenue for Product B: R1,500,000 - Expected sales revenue for Product C (first year):
- Current sales revenue for Product A: R2,000,000 - Current sales revenue for Product B: R1,500,000 - Expected sales revenue for Product C (first year): R1,000,000 - Research and development costs for Product C: R500,000 - Production Equipment Costs for Product C: R1,200,000 - Marketing costs for Product C: R300,000 - Expected variable costs for Product A: 70% of sales revenue - Expected variable costs for Product B: 60% of sales revenue - Expected variable costs for Product C: 65% of sales revenue - Fixed costs (overheads) for the entire business: R800,000 - Investment cost for Product A=R1,000,000 - Investment cost for Product B=R900,000 quired: - Using the provided financial data, explain which management accounting tools and techniques you would employ to evaluate the feasibility of introducing Product C. (12) - Perform a cost-volume-profit (CVP) analysis to determine the breakeven point for Product C and assess its profitability in the first year. (15)
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