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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:
- Calculate the total annual revenue and production cost for the new medical device.
- Prepare a break-even analysis for the new product.
- Analyze the profit margin per unit and overall for the new product.
- Discuss the strategic benefits of the new medical device for Johnson & Johnson.
- Evaluate the regulatory and market risks associated with the new product.
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