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Chan manufactures and sells 10 million bags to its international market at a cost of $20.00 each.It is about to introduce a new line of bags due to past success and forecast sales to be 12 million bags at a new price of $25 each.Sales on the old bags are anticipated to fall to 3 million.The old bags cost $6 each to manufacture, and the new ones will cost $8 each.What will be the cash flow used to evaluate the present value of the introduction of the new bag?
Independent Agents
Salespeople who sell a manufacturer’s products on an extended contract basis but are not employees of the manufacturer; also known as manufacturer’s representatives or reps.
Selling Company
A company or entity that is engaged in the act of selling goods, services, or both to consumers or other businesses.
New Buy
A purchase decision where a customer is buying a product or service for the first time, requiring significant research and evaluation.
Modified New Buy
A purchasing situation wherein a company makes some changes or modifications to a product they are buying again.
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