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Johnson & Johnson is assessing the costs for developing a new pharmaceutical drug. Fixed R&D costs are $300 million, and variable costs per unit are
Johnson & Johnson is assessing the costs for developing a new pharmaceutical drug. Fixed R&D costs are $300 million, and variable costs per unit are $50. The projected sales volume is 5 million units in the first year. Additionally, clinical trial expenses are estimated at $100 million, and marketing costs are expected to reach $80 million.
Requirements:
- Calculate the total R&D and clinical trial costs.
- Determine the cost per unit of the pharmaceutical drug.
- Analyze the impact of increasing the sales volume by 1 million units.
- Discuss the role of marketing expenditures in achieving sales targets.
- Evaluate the total cost of developing and launching the pharmaceutical drug.
- Recommend strategies for managing costs and maximizing profitability.
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