Is it possible that a 4-year-old could develop addictive behavior? 1. Emma’s parents sought professional advice but wanted Emma to continue developing computer skills. What plan of action do you….
What price should be set for the product?
Catoosa Company is hoping to launch a new product that will cost $70 in direct materials and $80 in direct labor per unit. Startup and development costs should total $18,000,000, and fixed costs will be $200,000 per year. Variable manufacturing overhead is estimated at 75% of direct labor costs. Catoosa plans to pay its salespeople a 10% commission on the product. Catoosa hopes to earn a markup of 15% on full costs. Sales are expected to be 30,000 units in the first year. Unit sales are expected to rise by 10,000 units per year for the next 5 years, then drop 20,000 a year for 3 years, at which point the product is expected to be obsolete. What price should be set for the product?