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If Size of the market is approximately 100,000 customers, and company expects to reach their normal market share penetration of 20% by the end of year two withfixed cost monthly: $500,000 ,Avg annual processing costs/customer : $100 andAverage annual revenue/ customer : $600 .
1. Explain explain the relationship between total revenue, marginal revenue and profit?
2. What would be the selling price of the product?
3. when you be break even?4. what will be the pay back period?
Prepare the Working Capital forecasting statement of the company and Materials are kept in store for 6 weeks, the processing time is 8 weeks and the finished goods are stored in godown for 90 days.
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