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ONE Pfeiffer Enterprises, Inc. has a plan to expand into a new product offering. Specifically, it's a gourmet food delivery service where ingredients and
ONE Pfeiffer Enterprises, Inc. has a plan to expand into a new product offering. Specifically, it's a gourmet food delivery service where ingredients and recipes/instructions are sent to the customer on a weekly basis in exchange for a monthly membership fee. Pfeiffer's managerial accountants have done analyses of expected revenues and costs. These analyses indicate that this product offering will have a significantly positive contribution margin, and that estimated revenues will far exceed both variable and fixed costs. What are some issues other than profitability should Pfeiffer consider before proceeding? Or is it sufficient to know that it will earn incremental profits for the company?
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