Question: Case Industries is considering introducing new bearing. The key data is: Estimated sales quantity 10,000 bearings per year $ 70.00 selling price based on a

Case Industries is considering introducing new bearing. The key data is: Estimated sales quantity 10,000 bearings per year $70.00 selling price based on a marketing study of what customers will pay for the new bearing Case was hoping to sell the bearings at $75.00 Profit Target is 10% of sales Unit Variable Costs - $50.00 Fixed Costs - $60,000 per year One-time research and development costs - $200,000 5 Year product life cycle

6A What are the Target Costs?

6B What are the Estimated Costs?

6C - Should Case Industries proceed with introducing the new bearing and why?

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