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tion 48 yet wered ked out of Flag question k Miller Brothers has determined that an operating cash flow of $24,300 will result in a
tion 48 yet wered ked out of Flag question k Miller Brothers has determined that an operating cash flow of $24,300 will result in a zero net present value for a proposed project. The fixed costs of the project are $9,360 and the contribution margin (Price per unit minus variable cost per unit) is $4.30. The company feels that it will capture 18 percent of the 60,000 unit market for this product. Should the company develop the new product? Why or why not? Select one: ER O a. Yes; because the financial break-even quantity is only 7,828 units. O b. Yes; because the financial break-even quantity is only 8,001 units. O c. Yes; because the anticipated market share is 2,400 units less than the financial break-even quantity. O d. No: because the financial break-even quantity is only 7,828 units. Oe. No; because the financial break-even quantity is only 8,001 units
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