Build a quantitative model to analyze the development and sale of a bicycle light. Assume that you
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Build a quantitative model to analyze the development and sale of a bicycle light. Assume that you could sell 20,000 units per year for five years at a sales price (wholesale) of $20 per unit and a manufacturing cost of $10 per unit. Assume that production ramp-up expenses would be $20,000, ongoing marketing and support costs would be $2,000 per month, and development would take another 12 months. Development costs are $500,000 and the yearly discount rate is 10%. How much development spending could such a project justify?
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
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