MarketingHW3-1 - Name: Sean Lyden Question 1-Unit...

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Question 1- Unit Contribution Equation Used to Find Figure, In Words (not Excel) Cost Price $8.90 Retailer $16.19 Retailer's Markup % on Sel ing Price: 45% Cost = Sel ing Price - (markup%)(Sel ing Price) 7.30 Wholesaler $8.90 Wholesaler's Markup % on Cost: 22% Cost = Price / (1+mark-up%) Manufacturer $7.30 Manufacturer's Price Type of Variable Cost - Variable Cost 1 $4.89 Manufacturing Variable Cost - Variable Cost 2 $0.88 Sales Commission Sales Commission per unit= Manufacturer Price * %Sales Commissio - Variable Cost 3 $0.29 Administrative Costs Total Variable Costs $6.06 Total Total Variable Costs= Sum of Al Variable Costs Unit Contribution $1.24 Unit Contribution = Sales Revenue - Total Variable Costs Question 2- Breakeven Point in Units Type of Fixed Cost Fixed Cost 1 $895,000 Manufacturing Costs Fixed Cost 2 $757,000 Advertising Budget Fixed Cost 3 $105,000 Salary Expenses Total Fixed Costs $1,757,000 Total Breakeven Point 1413609 Break Even point = Fixed Costs / Unit Contribution Question 3- Breakeven Market Share Market Share Total 32600000 Breakeven Market Share 4.34% Breakeven Market Share= Breakeven Point / Market Share Total Question 4- Swingline 747 Classic 2007 Profit Total Market for staplers 32600000 Classic 747 market share 4.90% Total amount of staplers sold 1597400 Total amount sold = Total Market * %Market Share Profit $228,437 Profit = (unit contribution x Quantity) - Fixed Costs Question 5- Breakeven Point in Units, 2008 Total Fixed Costs $2,230,000 New Total Fixed Costs= Old Total Fixed Cost + Increase in Fixed Cos Breakeven Point 1794165 Question 6- Number to Sel for Same Profit as in 2007 2472700 Total Amount Sold= Total Market * %Market Share Total Fixed Costs
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MarketingHW3-1 - Name: Sean Lyden Question 1-Unit...

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