Maxine leo vice president of marketing for 3d-vious


Maxine Leo, vice president of marketing for 3D-vious Printers, Inc., must decide whether to introduce a mid-priced version of the firm’s 3D printer product line—the 3D X. The 3D X would sell for $3,900 with unit variable costs of $1,800. Projections made by an independent marketing research firm indicate that the 3D X would achieve a sales volume of 500,000 units next year, in its first year of commercialization. One-half of the first year’s volume would come from the competitors’ 3D products and general market growth. However, a consumer research study indicates that 30% of the 3D X sales volume would come from the higher priced 3D Omega product, which sells for $5,900 (with unit variable costs of $2,200). Another 20% of the 3D X sales volume would come from the economy-priced 3D Alpha product, priced at $2,500 (with unit variable costs of $1,200). The 3D Omega sales volume is expected to be 400,000 units next year, and the 3D Alpha is expected to achieve a 600,000 unit sales level. The fixed costs of launching the 3D X have been forecast to be $2 million during the first year of commercialization. Should Maxine add the 3D X model to the product line? Why do you feel this way? The total margin contributions should come to 1,050,000,000 for 3DX. 130,000,000 for 3D alpha. And 555,000,000 for 3D Omega

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Maxine leo vice president of marketing for 3d-vious
Reference No:- TGS01368891

Expected delivery within 24 Hours