New Product Launch Cost Management

Data:

• Fixed Launch Costs: $15,000,000
• Variable Costs per Unit: $200
• Units Produced: 100,000
• Marketing Costs per Unit: $50

Requirements:

1. Calculate the total launch costs, including marketing costs.
2. Determine the cost per unit.
3. Analyze the effect of producing 20,000 additional units on total and per-unit costs.
4. Discuss the importance of managing marketing costs.
5. Recommend strategies for optimizing new product launch costs.
6. Evaluate the potential cost savings from leveraging social media marketing.
7. Assess the impact of cost control measures on the product's market entry success.