Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

Problem:

Consolidated Drugs, Inc. has invested $4 million testing and developing the new anti-aging drug.  Management now estimates which it will cost $2 million to manufacture and market this new product.  The present value of total revenue from all prospect sales of this drug is estimated to be $5 million.  On the basis of such numbers, management is recommending dropping project since costs will exceed revenues.

Required:

a.) Do you agree with this suggestion? Describe.

b.) The head of accounting department points out that if the product is produced and marketed, $4 million of the corporate overhead expenditures will be assigned to product. Does this new information modify your answer to (a) Describe?

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M910613

Have any Question? 


Related Questions in Macroeconomics

Question 1which of the following represents a keynesian

Question 1 Which of the following represents a Keynesian point of view of macroeconomics? a) aggregate supply is the primary determinate of economic output b) creating increases in aggregate demand to reduce unemployment ...

Describe the 2008 us physical activity guidelines for

Describe the 2008 U.S. Physical Activity Guidelines for children and adolescents aged 6 to 17 years old. How do they compare with the adult standards? Some of the guidelines for the child, adult and older adult populatio ...

The us health care economywrite an additional 4-5 pages in

The US Health Care Economy Write an additional 4-5 pages in response to the following: • How do providers influence the decisions that patients make? What type of decisions do patients make as a natural consequence of th ...

Topics why should we tax gasoline morecarper looks for

Topics: Why should we tax gasoline more? Carper Looks for Bipartisan Solution to Gas Tax If you want people to embrace green technologies, you need to make them, well, green. Organic Farmers See Green Both in Sustainabil ...

How can you implement doubly linked list write an algorithm

How can you implement doubly linked list? Write an algorithm for the doubly linked list.

Assignment the living wageas an alternative to the minimum

Assignment: The Living Wage As an alternative to the minimum wage, some localities have instituted a "living wage" requirement in which employers must pay a wage designed to ensure low-wage workers and their families can ...

You run a game day shuttle service for parking services for

You run a game day shuttle service for parking services for the local ball club. Your costs for different customer loads are 1: $30, 2: $32, 3: $35, 4: $38, 5: $42, 6: $48, 7: $57, and 8: $68. What are your marginal cost ...

Please answer the following question Please answer the following question below:-

Please answer the following question below:- Question:1.   Each of the following situations is independent of the other situations. For each draw a graph illustrating the situation and do the requested analysis. a. Consi ...

Subject-personal choices paperresourcespersonal choices

SUBJECT-Personal Choices Paper Resources Personal Choices Paper Scoring Guide. The purpose of this assignment is to consider how your personal choices affect environmental health and to asses alternatives that would impr ...

Per capita real gdp is given by the equation y ypn where y

Per capita real GDP is given by the equation y = Y/PN, where Y is nominal GDP, P is the GDP deflator, and N is population. In the United States, if the average growth rate of nominal GDP is 2.8 percent, inflation is 1.6 ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate