(Appendix 12A)iBurst Technology Is Developing a High-Speed Modem to Connect

question 40

Essay

(Appendix 12A)iBurst Technology is developing a high-speed modem to connect notebook computers with iSun's satellite-based data network.The cross-functional team in charge of the project has assembled the following information:

$\begin{array}{ l r l } \text { Expected market price } & \$ 150 \\\text { Required return on sales } & 20 \% \\\text { Product life } & 3 \text { years } \\\text { Currently feasible cost } & \$ 50,000,000 \\\text { Expeoted average annual sales } & 100,000\end{array}$

Required:

a) Given the above information calculate the cost reduction target.
b) If the cross-functional team believes the cost of the modem cannot be reduced by any more than 18%, is this a feasible product for iBurst Technology? Why or why not?
c) Whether the cost reduction target is feasible or not, what can the cross-functional team do to further reduce cost?

Learn to infer evolutionary relationships and changes based on DNA and protein sequence comparisons.

Understand the role of genetic drift, selection, and mutation rates in the evolution of genomes.

Identify factors influencing the rates of synonymous and nonsynonymous substitutions.

Understand the importance and application of similarity matrices in molecular evolutionary studies.

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Definitions:

Total Revenue

The entire amount of income generated by the sale of goods or services by a company before any expenses are deducted.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.