At the moment, there is uncertainty about the sales potential of the new workstation. Under both schemes, the payment will be made one year after the introduction of the workstation to the market at which point the product will be replaced by newer models not covered by the warranty service subcontract. The first involves the payment of a fixed fee of £1.2 million and the second a variable fee of £250 per workstation sold, subject to a minimum fee of £400,000. Sortit has proposed two different pricing schemes for the subcontract. The company has decided to subcontract the service support for the warranty and has entered negotiations about the support contract with Sortit. Mount 101 will be sold under a three- year warranty covering parts and labour. 1 E500 SR profit Fell Computers is developing and testing a new computer workstation, Mount101, which it will introduce to the market in the next six months.

Part 1 - Fell Computers In how and C100.00 300. Please do not submit an Excel spreadsheet. Your report should be submitted as a pdf document, consisting of no more than 2,000 words, excluding figures, charts, tables, footnotes, references and appendices.

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