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Executives at Barbco, a pharmaceutical manufacturer, are preparing to introduce Betatron, a new vitamin into the...

Executives at Barbco, a pharmaceutical manufacturer, are preparing to introduce Betatron, a new vitamin into the market. The following cost information pertains to new vitamin:

Chemical compound $1.25/bottle
Packaging/label $0.35/bottle
Developer royalties $1.00 bottle
Advertising and promotion $675,000
Barbco overhead $500,000
Selling price per bottle to distributor $9.00


Based on the above, answer the following three questions.

Based on the information provided above:

Dollar contribution per bottle?

Based on the information provided above:

Net profit if 1 million bottles are sold?

Based on the information provided above:

Necessary unit volume to achieve a $200,000 profit.

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Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago
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