You want to establish your own business and are thinking about releasing a new product. Customers will pay P200 for it, according to market research, and your sales team believes they can sell at least 1,000 units every month. The payment for P1,800,000 equipment you'll need to make the product will be spread out over three ye (monthly). Costs of producing the product are direct labor P20, direct materials P15, shipping P5 and sales
You want to establish your own business and are thinking about releasing a new product. Customers will pay P200 for it, according to market research, and your sales team believes they can sell at least 1,000 units every month. The payment for P1,800,000 equipment you'll need to make the product will be spread out over three ye (monthly). Costs of producing the product are direct labor P20, direct materials P15, shipping P5 and sales
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![You want to establish your own business and are thinking about releasing a new product. Customers will pay
P200 for it, according to market research, and your sales team believes they can sell at least 1,000 units every
month. The payment for P1,800,000 equipment you'll need to make the product will be spread out over three years
(monthly). Costs of producing the product are direct labor P20, direct materials P15, shipping P5 and sales
commission P10. Justify whether or not the product is financially viable.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8767be74-149e-4ef0-873a-e8f113b3e5eb%2Fd343bf95-3d80-4b99-8bdc-bb5acd18ccb1%2F9kovnmq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:You want to establish your own business and are thinking about releasing a new product. Customers will pay
P200 for it, according to market research, and your sales team believes they can sell at least 1,000 units every
month. The payment for P1,800,000 equipment you'll need to make the product will be spread out over three years
(monthly). Costs of producing the product are direct labor P20, direct materials P15, shipping P5 and sales
commission P10. Justify whether or not the product is financially viable.
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