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Richard Miller was preparing a new product analysis for Brand A. Based on his market research his decision was to sell at $10 retail. Retailers

Richard Miller was preparing a new product analysis for Brand A. Based on his market research his decision was to sell at $10 retail. Retailers customarily expected a 35 per cent margin and wholesalers a 25 per cent margin (both expressed as a percentage of their selling price). Brand A's variable costs were $2/unit and estimated total fixed costs were $28,000. At an anticipated sales volume of9,000 units, would Richard's Brand A make a profit?

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