When should companies consider the cost of research and development?

2. After R&D and before Production

3. After R&D and Production

4. None of the above

Acme LLC has already paid $10,000,000 in Research & Development costs. Unfortunately,

times have changed. Since they started R&D, the market for their new product, "the fancy

machine," has shrunk. Acme's accountants have determined that if they were to still produce

the fancy machines, the quantity that would produce the highest revenue would be 1,000,000

fancy machines. Each machine costs $4 to make and would be sold for $12. What should

Acme do?

1. Not produce any fancy machines

2. Produce less than 1,000,000 fancy machines

3. Produce 1,000,000 fancy machines

4. Produce more than 1,000,000 fancy machines

Acme LLC has already paid $10,000,000 in research & development. Unfortunately, times

have changed since they started R&D and the market for their new product, the fancy