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ABC Corp. is introducing a new product. The product is forecast to have $30 million per...

ABC Corp. is introducing a new product. The product is forecast to have $30 million per year in total fixed costs, COGS per unit is $35, and salespeople earn 5% commission on sales.

At a selling price of $100, how many units need to be sold annually to breakeven?

At the price of $100, how many units need to be sold to generate a net margin of $300,000 per year?

At the selling price of $100, how many units need to be sold annually to generate a 12% net margin?

Suppose that the annual level of total industry sales for the next year is forecast to be 2,500,000 units. If ABC is to earn a 10% net margin, what market share would they have to secure?

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ekkarill92 answered 2 years ago
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