Homework help

ChemCo has developed a new product, and has consulted with its marketing

department, who have determined that the market share will be 20,000 units,

and have recommended that a selling price of $60.00 per unit would be app-

ropriate. ChemCo has been able to keep the cost per unit at $50.00.

The company has spent a total of $900,000 to design and develop this product.

Required: Use the above information to compute as follows:

1.Compute the expected margin for ChemCo

2.Compute the expected turnover

3.Compute the ROI

Explain why it is necessary to do the above computations, and show how management can use this information for managing operations