Directions: For this assignment you will need to evaluate the scenario " Product Launch" [directly below} and determine which of the two products, \"Redesign\" or "New", this company should launch and at what price point. Like the last three integrative assignments you will enter youranswers directly in Canvas under the assignment \"Integrative Assignment 4". You will have two attempts. Please complete the nal attempt by end of day Sunday ofweek 10 (March 14\"], The rst question is an essay question worth 30 points and will not be automatically graded by Canvas. Scenario: 'Product Launch\" You are the lead project managerfor two product launches. Product "Redesign" is a redesigned product of your company's bestselling product. Product "New\" is a completely new product in a new product category, The initial plan is to price product \"Redesign" at $425 per unit and product "New" at $600 per unit. Based on these prices. the head of marketing believes that over the next 5 years the company could sell anywhere from 235,000 to 550,000 of product "Redesign" and 125,000 to 425,000 of product "New". He believes that there is a 50% chance that demand will be at the low end and a 50% chance that demand could be at the high end. In essence an equal chance that actual demand will fall anywhere on this demand curve. To achieve these projected sales numbers. for each product, the company will need to spend $5,000,000 dollars in marketing over 5 years, plus compensate the company's direct sales staf'F with a 5% sales commission on the purchase price of the product for each unit that is sold. In order to understand the impact to the company's nancial position, you discuss with the Vice President of Operations the operational cost structure of these two products. For product "Redesign", she is projecting that the company will need to invest $30,000,000 for manufacturing equipment which will allow the company to make 500,000 units of this product over 5 years. For product "New", she is projecting that the company will need to invest $36,000,000 for manufacturing equipment which will give the company the capacity to make 350,000 units of this product over 5 years. As seen in Exhibit A alexcel le I'Exhibit A - IntegrativeAssignment #4"), The VP. of operations has also developed a thorough list of the raw material and labor cost needed to manufacture each product as well as the manufacturing overhead. As you study this information you notice an interesting detail, the company will not have enough manufacturing capacity if demand for both products is on the high-end of the sales projections. You discuss this limitation with the VP of Operations. In your discussion, she feels that with an additional investment of $10,000,000 million dollars for product "Redesign", operations can increase capacity to 750,000 units over 5 years, and ioran additional investment of $5,000,000 million dollars for product "New", operations can increase capacity to 475,000 units over 5 years. However, based on your initial breakeven analysis this additional investment will not pay for itself unless demand for both products signicantly increases, Based on this dilemma you strategize with the VP of Marketing on ways to increase demand. He proposes to lower the price of each product. The VP of mad