Question: Johnson & Johnson is planning to launch a new line of medical devices with the following financial details: Development Costs: $800 million Production Costs per

  • Johnson & Johnson is planning to launch a new line of medical devices with the following financial details:
    • Development Costs: $800 million
    • Production Costs per Unit: $200
    • Selling Price per Unit: $600
    • Estimated Annual Sales: 2 million units
    • Fixed Costs: $300 million annually
  • Requirements:
    1. Calculate the total annual revenue and production cost.
    2. Prepare a break-even analysis.
    3. Analyze the profit margin per unit and overall.
    4. Discuss the strategic benefits of the new medical device line.
    5. Evaluate the regulatory and market risks.

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