Novartis has just released a new drug used to combat early-onset Alzheimer's. In its first year of commercial release, the drug generates 2.3 billion dollars in new revenues for the company. However, the total cost of producing the drug (including R&D) is equal to 4.8 billion dollars. What is Novartis's approximate "return on sales" at this point? a. A 109% loss. b. A 52% profit. CA 109% profit. d. A 52% loss.

Novartis has just released a new drug used to combat early-onset Alzheimer's. In its first year of commercial release, the drug generates 2.3 billion dollars in new revenues for the company. However, the total cost of producing the drug (including R&D) is equal to 4.8 billion dollars. What is Novartis's approximate "return on sales" at this point? a. A 109% loss. b. A 52% profit. CA 109% profit. d. A 52% loss.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter1: Introduction And Goals Of The Firm

Section: Chapter Questions

Problem 7E

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