Your cousin Vinny works for a small manufacturing company in Windsor, CT. His business card has his title as EVP of Stra
Posted: Sun May 08, 2022 10:31 am
Your cousin Vinny
works for a small manufacturing company in Windsor, CT. His
business card has his title as EVP of Strategic Development, but
that is a little grander than his actual role. The owner of the
company Mona Lisa Vito has handed Vinny a project to evaluate.
The company’s
business is the manufacturer of high-end lenses for laser
steel-cutting technology. The mid-range product (it has a few
high-end products and a basic no-frills product also) sells for
$175K each. Last year the company sold 120 units across all its
product lines, for revenues of $22.5 million.
The company has a
new product under development. To understand how the new product is
different to existing products, think of an analogy of contact
lenses: The company’s new product is like a one-day wear disposable
lens. The company is considering issuing a beta-version of the
product to be actively tested by a select group of customers. The
facts about the new product are set out below:
Given these facts,
should we invest the $1.0M today to begin this process?
works for a small manufacturing company in Windsor, CT. His
business card has his title as EVP of Strategic Development, but
that is a little grander than his actual role. The owner of the
company Mona Lisa Vito has handed Vinny a project to evaluate.
The company’s
business is the manufacturer of high-end lenses for laser
steel-cutting technology. The mid-range product (it has a few
high-end products and a basic no-frills product also) sells for
$175K each. Last year the company sold 120 units across all its
product lines, for revenues of $22.5 million.
The company has a
new product under development. To understand how the new product is
different to existing products, think of an analogy of contact
lenses: The company’s new product is like a one-day wear disposable
lens. The company is considering issuing a beta-version of the
product to be actively tested by a select group of customers. The
facts about the new product are set out below:
Given these facts,
should we invest the $1.0M today to begin this process?