The following information pertains to a recent Bluetooth cordless headset produced by Optronix, Inc. This device uses
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Like most electronic products, the model has a short life cycle of about a year. The firm also expects to cut product price at least twice during the year and have a “clearance” sale at year-end.
Price $89 $69 $49 $29
Volume 450,000 400,000 500,000 200,000
Required:
a. Compute the product’s lifetime revenue.
b. Optronix knows that the demand is uncertain and that the data in the problem are just its best estimates. How can Optronix deal with this uncertainty when planning prices?
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Related Book For
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
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