Assumptions: average ASP = $10.00 A) What is the price of the mainstream product a) Gross margin
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Question:
Assumptions:
average ASP = $10.00
A) What is the price of the mainstream product
a) Gross margin = Gross Profit / Price
B) What is the price of the High End Product?
C)What is the cost of the High End Product @ 60% Gross Margin = ?
D) How much incremental cost can be added to the mainstream product before the Gross Margin of the High End Product drops below 60 %? Assume the Mainstream product is the platform for the High End product .
Related Book For
An Introduction to Management Science Quantitative Approach to Decision Making
ISBN: 978-1337406529
15th edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
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