One of the first decisions you have to make as the brand manager for Vesuvius is whether or not to add a new line of counter top vegetable steamers, the "Super-Vesuvius line. The line would be marketed in addition to the original Vesuvius line. Your brand assistant has provided you with the following facts. a. Retail selling price​​​​​$70 per unit
b. All margins the same as before
c. Direct factory labor​​​​$3 per unit
d. Raw materials​​​​​$6 per unit
e. Additional factory and admin. overheads​​$3.5 per unit
(if unit volume = 50,000)
f. Salesperson's commissions: …………….​​the same percent as before
g. Incremental sales force travel cost​​​$60,000
h. Advertising for Super Vesuvius​​​$650,000
i. New equipment needed​​​​$950,000 (to be depreciated over 10 years)
j. Research and development spent​​​$250,000
up to now
k. Research and development to be​​​$600,000 (to be amortized over 5 years)
spent this year to commercialize
the product