skip to Main Content
The smarter way
to do assignments.

Please note that this is just a preview of a school assignment posted on our website by one of our clients. If you need assistance with this question too, please click on the Order button at the bottom of the page to get started.

Product X is a consumer product with a retail price of $9.95. Retailer’s margins on the product
are 40% (based on the selling price to consumers) and wholesaler’s margins are 8% (based on the
selling price to retailers). The size of the market is $300,000,000 annually (based on retail sales);
product X’ share (in dollars) of this market is 17.3%.
The fixed costs involved in manufacturing Product X are $1,400,000 and the variable
costs are $0.86 per unit. The advertising budget for Product X is $2,000,000. Miscellaneous
variable costs (e.g., shipping and handling) are $0.04 per unit. Salespeople are paid
entirely by a 12% commission based on the manufacturer’s selling price. Product manager’s
salary and expenses are $90,000.
Assuming that you are the manufacturer, calculate the following:
1. What is the unit margin (contribution) for Product X (in $)?
2. What is Product X’s break-even volume?
3. What market share (based on retail sales) did Product X need to break even?
4. What is Product X’s (annual) net profit?
5. Calculate the increase in sales over the current volume needed to maintain the
current profit level if the manufacturer doubles its advertising expenditures.
6. Calculate the increase in sales over the current volume needed to maintain the
current profit level if the manufacturer lowers its price by 25%.
7. Calculate the increase in sales over the current volume needed to maintain the current
profit level if the manufacturer increases the sales force’s commission to 15%.

GET HELP WITH THIS ASSIGNMENT TODAY

Clicking on this button will take you to our custom assignment page. Here you can fill out all the additional details for this particular paper (grading rubric, academic style, number of sources etc), after which your paper will get assigned to a course-specific writer. If you have any issues/concerns, please don’t hesitate to contact our live support team or email us right away.

How It Works        |        About Us       |       Contact Us

© 2018 | Intelli Essays Homework Service®

Back To Top