Revenues year 2 240 100000 units 24000000 years 3 4

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RevenuesYear 2 ($240×100,000 units)$24,000,000Years 3 & 4 ($110×1,200,000 units)132,000,000Total revenues156,000,000Variable costs ($60×1,300,000 units)78,000,000Fixed costs35,742,000Operating income$42,258,000Over the product’s life-cycle, Option B results in an overall higher operating income of$3,000,000.3.Before selecting its pricing strategy, Intentical managers should evaluate whether the samepricing policy will be adopted globally.Different markets may need different pricing.Forexample, special taxes on imports may mean higher prices in foreign markets.Intentical’spricing strategy must be sensitive to changing customer preferences and reactions of competitors.
12-26(30 min.)Relevant-cost approach to pricing decisions.
3.If the new customer is likely to remain in business, Stardom should consider whether astrictly short-run focus is appropriate. For example, what is the likelihood of demand from other
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Term
Spring
Professor
ProfessorSherwin

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