Question

Custom Cabinets spends its product research dollars as follows: 32% goes to improving existing products, 28% to creating new products for current customers, 20% to new products for new customers, and 20% to reducing product and service costs. Last year, Custom Cabinets spent $2.75 million on product research. What was the dollar amount spent on new products for new customers

Answer 1

0.55 million

Step-by-step explanation:

The research cost that was spent on new products for new customer is 20% of $2.75 million.

Mathematically,

Cost Incurred on creating new product for new customer = $2.75m * 20%

= 0.55 million