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Johnson & Johnson is planning to launch a new medical device with the following financial projections: Development Costs: $800 million Production Costs per Unit: $500

  • Johnson & Johnson is planning to launch a new medical device with the following financial projections:
    • Development Costs: $800 million
    • Production Costs per Unit: $500
    • Selling Price per Unit: $1,500
    • Estimated Annual Sales: 500,000 units
    • Fixed Costs: $200 million annually
  • Requirements:
    1. Calculate the total annual revenue and production cost for the new medical device.
    2. Prepare a break-even analysis for the new product.
    3. Analyze the profit margin per unit and overall for the new product.
    4. Discuss the strategic benefits of the new medical device for Johnson & Johnson.
    5. Evaluate the regulatory and market risks associated with the new product.

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