You have determined that an ocf of $151,406 will result in a zero net present value for a project, which is the minimum requirement for project acceptance. the fixed costs are $387,200 and the contribution margin per unit is $56.11. the company feels that it can realistically capture 8.5 percent of the 140,000 unit market for this product. the tax rate is 21 percent and the required rate of return is 13 percent. should the company develop the new product? why or why not?

Seattle bank’s start-up division establishes new branch banks. each branch opens with three tellers. total teller cost per branch is $96,000 per year. the three tellers combined can process up to 90,000 customer transactions per year. if a branch does not attain a volume of at least 60,000 transactions during its first year of operations, it is closed. if the demand for services exceeds 90,000 transactions, an additional teller is hired and the branch is transferred from the start-up division to regular operations. required what is the relevant range of activity for new branch banks