An 8 Year Project Is Estimated to Produce a Product

question 12

Multiple Choice

An 8 year project is estimated to produce a product with the following information: selling price = $80 per unit; variable costs are $65 per unit; fixed costs are $20,000; required return is 10%; initial investment = $200,000.Calculate the accounting break-even.

• A)3,000
• B)3,833
• C)4,000
• D)4,833

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Definitions:

Geodemographics

The study of people based on where they live, integrating geography with demographic analysis for marketing and planning purposes.

STP Process

STP stands for Segmentation, Targeting, and Positioning, a strategic approach in marketing to identify and deliver tailored messages to specific segments of a market.

Segmentation Methods

Techniques used to divide a market into clearly identifiable groups of consumers with similar needs, characteristics, or behavior.

Psychographic Segmentation

A market segmentation strategy that divides consumers based on their lifestyle, interests, attitudes, values, and beliefs.