Fixed costs are 12378 and contribution margin is 6.20., Ask an Expert

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Thompson & Son have been busy in examining new product. They have found out that the operating cash flow of $16,700 will result in zero net present value, which is company needs for project acceptance. Fixed costs are $12,378 and contribution margin is $6.20. Company feels that they can realistically capture 10 percent of $50,000 unit market for this product. Must the company develop new product?

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Project Management, Management Studies

Category:- Project Management
Reference No.:- M933485

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