PortaCom manufactures notebook computers and related equipment.
PortaCom's product design group developed a prototype for a new
high-quality portable printer. The new printer features an
innovative design and has the potential to capture a significant
share of the portable printer market. Preliminary marketing and
financial analyses provided the following selling price, first-year
administrative cost, and first-year advertising cost:
Selling price
=
$245 per unit
Administrative cost
=
$350,000
Advertising cost
=
$550,000
In the simulation model for the PortaCom problem,...