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Tara is considering leaving her current job, which pays € 56,000 per year, to start a new company that manufactures a line of special pens for personal digital assistants. Based on market research, she can sell about 160,000 units during the first year at a price of € 20 per unit. With annual overhead costs and operating expenses amounting to € 3,160,000, Tara expects a profit margin of 25 percent. This margin is 6 percent larger than that of her largest competitor, Pens, Inc.
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