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Essay

Super Project

Essay specific features

 

Issue:

Business

 

Written by:

Sarah D

 

Date added:

December 8, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

5 / 1260

 

Was viewed:

6539 times

 

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Essay content:

Test-market expenses, which were included in the first period, are sunk costs because they had been already expensed for feasibility of the Super project. Therefore, the management should not include the test-market expenses into calculation of the cash flows. b. The management did not include the overhead costs into the calculations, but the managerfinancial analysis proposed to embrace the costs in Alternative 3...
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However, the management should not include overhead expenses because overhead expenses affect many areas of the business and are not attributable to a particular business activity. Only additional overhead expenses that arise of the decision to take a project should be added. c. As sales of the Super project displace sales of Jell-O, the management should add, and it actually added, the erosion of Jell-O contribution margin to the cash flows...
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