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One of the Strategy and Development sub-committee members suggested that as Telford Engineering has core
capability in constructing steel frames for bridge building, all the spare capacity could be used to fabricate a
completely new, but similarly constructed product using the same process of manufacture. The proposal is to start
producing 'booms' or 'jibs' for large crane manufacturers. This would cost $240,000 in additional development
costs to convert and create spare capacity, but will open a completely new higher value market for Telford
Engineering, increasing the current sales value by 20%. The higher sales margin would mean that the total cost of
materials for this product will only be 25% of sales. what would be the sales
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