TSMC 1.pdf - Stefan

Stefan Myers Myers_TSMC.xlsx slm0571
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A B
TUPELO SEWING MACHINE COMPANY
Breakeven Analysis in Promotion Decisions
Worksheet created by Stefan Myers
INPUTS SECTION
Information on Prices, % Volume, and Markups
Alpha model unit selling price 800.00 $
Beta model unit selling price 900.00 $
Delta model unit selling price 1,000.00 $
% unit sales Alpha 35.00%
% unit sales Beta 50.00%
% unit sales Delta 15.00%
Wholesaler %musp 20.00%
Retailer %muc 40.00%
Information on unit variable costs
Alpha material cost per unit 70.00 $
Alpha labor cost per unit 60.00 $
Beta material cost per unit 100.00 $
Beta labor cost per unit 90.00 $
Delta material cost per unit 120.00 $
Delta labor cost per unit 140.00 $
Shipping and packaging cost per unit 32.00 $
Salesforce commission 4.00%
Information on Fixed Costs
Annual production setup cost 140,000.00 $
Annual salary of a salesperson 40,000.00 $
Annual travel expenses of a salesperson 24,000.00 $
Advertising expenditure per year 160,000.00 $
Cost of one brochure 10.00 $
Karen's salary 84,000.00 $
Other Information
Desired $ Profit $500,000.00
Desired % ROI 25.00%
Investment in the sewing machine division 1,600,000.00 $
Desired % profit on sales 15.00%
Number of Tupelo salespeople 6
Number of brochures planned 5,000
Industry Unit Sales 2019 14,000
Expected increase in Industry units for 2020 10.00%
Tupelo's % unit market share target for 2020 20.00%
MKTG 3700.007 Professor Ganesh 2021 Fall