Question
Martinez, Inc., is a small firm involved in the production and sale of electronic business products. The company is well known for its attention to
Martinez, 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 15 months, a new product has been under development that allows users handheld access to e-mail and video images. Martinez named the product the Wireless Wizard and has been quietly designing two models: Standard and Enhanced. Development costs have amounted to $186,000 and $267,000, respectively. The total market demand for each model is expected to be 43,000 units, and management anticipates being able to obtain the following market shares: Standard, 30 percent; Enhanced, 25 percent. Forecasted data follow. |
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