Question
Financial Data: The following financial information is available for the analysis: Current sales revenue for Product A: R2,000,000 Current sales revenue for Product B: R1,500,000
Financial Data: The following financial information is available for the analysis: 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
What is the variable cost for product C?
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