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EXERCISES IN FINANCIAL ANALYSIS OF MARKETING DECISIONS 2. Nora Chambers is preparing a new product analysis for a product she has code- named L240. She
EXERCISES IN FINANCIAL ANALYSIS OF MARKETING DECISIONS 2. Nora Chambers is preparing a new product analysis for a product she has code- named L240. She has decided L240 should sell at $94.95 retail, based on her market research. Retailers customarily expect a 40 per cent markup and wholesalers, a 20 per cent markup (both expressed as a percentage of their selling price). L240's variable costs are $31.50 per unit and estimates total incremental fixed costs are $80,000. At an anticipated sales volume of 5,000 units, will Nora's L240 make a profit
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