You are in the launch meeting where you get to know the financials of the product. Will you go ahead with the launch, based on the available information?
Description of the task: You receive the following data from the team. This data gives you the final product price in India & the associated costs.
Product pricing – INR 10,000 (Fixed with the global team)
Product cost:
- Manufacturing fixed cost – INR 2,500
- Marketing cost – INR 3,000
- Tax – INR 2,000
- Shipping, Inventory, and other costs – INR 2,500
Also, 80% of the sales happen when there is at least a 10% discount on the price of 10,000 INR.
Task: Compute the final profit for the product based on the above data? And please mention if you will go ahead and launch the product vs. not.