The estimated development cost of this new service is $12,000 for all the six locations. If...
The estimated development cost of this new service is $12,000 for all the six locations. If the ramp-up and marketing support cost are estimated at $2,300 for each location. Calculate the estimated cash flow for the six (6) consulting service locations if the total revenue for the entire locations is $19,816. Will the new consulting firm break even, make profit or loss for this new service? NB: This is a single time period cash flow question.
Homework Answers
Total cash flow
Total revenue= 19816
Less: estimated development cost= 12000
LesS:Total ramp up and marketing cost= 2300*6 = 13800
Net cash flow= -5984
Hence the new consulting firm will make a loss.
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The estimated development cost of this new service is $12,000
for all the six locations. If...
Development cost $ 1,300,000 Estimated development time 9 months Pilot testing $ 200,000 Ramp-up cost $...
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Pilot testing
$
200,000
Ramp-up cost
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400,000
Marketing and support cost
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per year
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60,000
per year
Unit production cost
$
100
Unit price
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Interest rate
8
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Sales and production volume
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per year
Unit production cost
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Unit price
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Interest rate
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vehicle line for children. The new product is called the Kiddy
Dozer. It will look like a miniature bulldozer, complete with
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demand and the cost to develop and produce the new Kiddy Dozer. The
table below contains the relevant information for this project.
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project for a new product to be added to their small motorized
vehicle line for children. The new product is called the Kiddy
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caterpillar tracks and a blade. Tuff Wheels has forecasted the
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table below contains the relevant information for this project.
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