Bindle-Featherston Company has a new product. It estimates that first year sales will result in...
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Accounting
Bindle-Featherston Company has a new product. It estimates that first year sales will result in 150,000 units sold and a growth rate of 12% per year. The sales price is $25 per unit and will increase by 5% per year. The fixed costs are $200,000 per every 100,000 units and variable costs are $10 per unit. Variable costs will increase by 3% per year due to increased material and labor costs. What is the profit expected in year three?
Multiple Choice
A. $2,279,600.00
B. $2,422,400.00
C. $2,789,970.56
D. $2,963,150.56
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