8/Nivea Company is planning to introduce a new product. Market research information suggests that the product should sell 1000 units at OMR 225 per unit. The company seeks to make a mark-up of 45% product cost. It is estimated that the lifetime costs of the product will be as follows: 1. Design and development costs OMR 22000 2. Manufacturing costs OMR 150 per unit 3. End of life costs OMR 3000 By analyzing the life cycle cost of the product, do you recommend the company to produce the new product? a. No, the product generate profit by producing this product b. Yes, the product cannot generate profit by producing this product c. Yes, the product generate profit by producing this product d. No, the product cannot generate profit by producing this product
8/Nivea Company is planning to introduce a new product. Market research information suggests that the product should sell 1000 units at OMR 225 per unit. The company seeks to make a mark-up of 45% product cost. It is estimated that the lifetime costs of the product will be as follows: 1. Design and development costs OMR 22000 2. Manufacturing costs OMR 150 per unit 3. End of life costs OMR 3000 By analyzing the life cycle cost of the product, do you recommend the company to produce the new product? a. No, the product generate profit by producing this product b. Yes, the product cannot generate profit by producing this product c. Yes, the product generate profit by producing this product d. No, the product cannot generate profit by producing this product
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
8/Nivea Company is planning to introduce a new product. Market research information suggests that the product should sell 1000 units at OMR 225 per unit. The company seeks to make a mark-up of 45% product cost. It is estimated that the lifetime costs of the product will be as follows:
1. Design and development costs OMR 22000
2. Manufacturing costs OMR 150 per unit
3. End of life costs OMR 3000
By analyzing the life cycle cost of the product, do you recommend the company to produce the new product?
a.
No, the product generate profit by producing this product
b.
Yes, the product cannot generate profit by producing this product
c.
Yes, the product generate profit by producing this product
d.
No, the product cannot generate profit by producing this product
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