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Preparing a new product analysis for brand

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Kelly Droner was preparing a new product analysis for Brand C. Based on his market research, his decision was to sell at $10 retail. Retailers customarily expected a 40 per cent margin and wholesalers a 20 percent margin (both expressed as a percentage of their selling price). Brand C's variable costs were $2/unit and estimated total fixed costs were $28,000. At an anticipated sales volume of 9,000 units, would Kelly's Brand C make a profit?

Reference no: EM131843213

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