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( i ) Johnson and Gomez, Inc., is a small firm involved in the production and sale of electronic business products. The company is well
i
Johnson and Gomez, Inc., is a small firm involved in the production and sale of electronic business products. The company is well known for its attention to quality and innovation.
During the past months, a new product has been under development that allows users improved access to email and video images. Johnson and Gomez code named the product the Wireless Wizard and has been quietly designing two models: Basic and Enhanced. Development costs have amounted to $ and $ respectively. The total market demand for each model is expected to be units, and management anticipates being able to obtain the following market shares: Basic, percent; Enhanced, percent. Forecasted data follow.
tableBasic,EnhancedProjected selling price,$$
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