Question

the following table shows the expansion expenses of a business. calculate the product growth costs of expansion.
expansion expenses
product growth
focus groups 40 people at $175/person
inventory expenses 20% on $240,000 value
new equipment $225,000
building growth
architect $13,500
attorneys $57,000
bankers $105,000
product growth costs = $?

Explanation:

Step1: Calculate Focus Groups cost

Focus Groups: 40 people at $175/person, so cost is $40\times175 = 7000$.

Step2: Calculate Inventory Expenses cost

Inventory Expenses: 20% on $240,000, so cost is $0.2\times240000 = 48000$.

Step3: New Equipment cost is given as $225000$.

Step4: Sum all Product Growth costs

Total = 7000 + 48000 + 225000 = 280000.

Answer:

280000