Question: Dell Computers is investigating whether to introduce a new tablet into the market next year. They estimate their fixed costs for this product will be

Dell Computers is investigating whether to introduce a new tablet into the market next year. They estimate their fixed costs for this product will be $900,000. They intend to price the tablet at $500 at a 25% markup. Their estimates suggest that they will be able to sell 10,000 units every year. According to this information, should Gell Computers continue with this venture?

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