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Green, Inc., a start-up software company, has developed a business planning software package that it hopes to market to three market segments. The software
Green, Inc., a start-up software company, has developed a business planning software package that it hopes to market to three market segments. The software will be modified slightly so as to differentiate it among those markets. Product A will be marketed to the general public through magazine ads and will have a relatively small documentation manual and only the most basic computational ability; it will sell for $80 per unit. Product B will be sold to emerging professionals who may use it for themselves or periodically for a client. This product has intermediate computational ability and documentation and will sell for $130 per unit. Product C is the full professional model; it has maximum computational ability and full documentation, including a section on creative planning ideas. This unit will sell for $380. The variable costs for A, B, and C are $30, $70, and $120, respectively. The marketing manager expects the products to sell in the ratio of 2 to 1 to 1, respectively. Fixed costs for the firm are $400000. If management wants to earn a before-tax profit of $620000, what quantity of each product must be sold? A (pcs): B (pcs): C (pcs):
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