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Please show solution. Delaware Carnival Inc. will be offering a new ride in its amusement park. It has identified the following sales and costs from
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Delaware Carnival Inc. will be offering a new ride in its amusement park. It has identified the following sales and costs from its introduction phase to the growth stages Year 0 Year! Year 2 Year 3 Tickets to be sold 72,000 240,000 312,000 Price per unit 200 200 200 COSTS Research and Development 8,000,000 8,000,000 Ride designing and prototyping 24,000,000 24,000,000 Ride equipment manufacturing and safety 10,000,000 10,000,000 trial runs Marketing 8,000,000 8,000,000 4,000,000 20,000,000 Repairs and maintenance 4,000,000 3,000,000 2,000,000 9,000,000 Utilities 360,000 1,200,000 1,560,000 Customer Support 1,440,000 4,800,000 6,240,000 Cost of printing tickets 360,000 1,200,000 1,560,000 Incremental Administrative 500,000 500,000 500,000 1,500,000 TOTAL COSTS 54,500,000 | 13,3660,000 13,700,000 81,860,000 Its maturity stage will span a period of three years where the entity will be forced to lower its prices to P180 per ticket to maintain annual sales of 300,000. Its decline stage will provide sales of P18,000,000 (100,000 tickets x P180) and total costs of P15,000,000 If the target life cycle profit margin is 25%, how much is the total maximum cost that Delaware can incur over the three-year maturity phaseStep by Step Solution
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