earticle

영어

Firms are increasingly recognizing the necessity of developing new products. New product(innovation), however, can fail. The key to successful innovation lies in developing better newproduct ideas and developing sound research and decision procedures at each of the newproductdevelopment process. The purpose of each stage is to decide whether the idea should be further developed or dropped. In this paper, especially, commercialization(product development, market testing, launching, sales planning and financing planning) is focused.
Operating leverage and financial leverage refers to the use of fixed cost(fixed asset, debt) in an attempt to level up profitability. Both types of leverage affect the level and variability of the firm's aftertax earnings and, hence, the firm's overall risk and return.
The higher the expected level of sales(or EBIT) assuming that it exceeds Breakeven
point (or Financing breakeven point), the stronger the case that can be made for investing in fixed assets.(or debt financing)