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MarketingHW3

# MarketingHW3 - Name Sean Lyden Question 1-Unit Contribution...

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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 Selling Price: 45% Cost = Selling Price - (markup%)(Selling 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 Commissi - Variable Cost 3 \$0.29 Administrative Costs Total Variable Costs \$6.06 Total Total Variable Costs= Sum of All 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 Name: Sean Lyden Total Fixed Costs= Sum of All fixed costs

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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 Co Breakeven Point 1794165 Question 6--Number to Sell for Same Profit as in 2007 2472700
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MarketingHW3 - Name Sean Lyden Question 1-Unit Contribution...

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