• Procter & Gamble plans to launch a new line of eco-friendly products with the following financial data:
  • Development Costs: $600 million
  • Marketing Expenses: $250 million
  • Estimated Annual Sales: $1.5 billion
  • Variable Costs: $750 million annually
  • Fixed Costs: $300 million annually

• Requirements:
  1. Calculate the break-even point in sales dollars for the new product line.
  2. Prepare an income statement for the first year of sales.
  3. Analyze the profit margin for the new eco-friendly product line.
  4. Discuss the strategic importance of eco-friendly products in Procter & Gamble’s portfolio.
  5. Evaluate the potential market risks and competition in the eco-friendly products segment.