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It is known that PT Copter sells helicopters by using a target pricing method based on the Product Life Cycle, below are the data: Total
It is known that PT Copter sells helicopters by using a target pricing method based on the Product Life Cycle, below are the data: Total budget for 20 years of product life cycle Year 1 - 5: R&D Costs $ 3.000.000 - Design costs $ 1.500.000 - Other costs $ 200.000 Year 6 - 20: Production costs $ 500.000 and $ 125.000/unit Marketing costs $ 250.000 and $ 16.000/unit - Distribution costs $ 45.000 and $ 9.000/unit - Customer service costs $ 75.000 and $ 30.000/unit During the production process, the company can produce as many as 2,000 helicopters, Determine: a. Selling price if the operating life cycle margin is 30% of the total cost. b. The minimum total revenue by selling helicopter to achieve that operating margin
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