MarketingHw4-Final

MarketingHw4-Final - Homework #4- Smart Baby Name: Sean...

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Name: Sean Lyden 1. Breakeven Manufacturer's Price Fixed Costs $6,059,000.00 Known Variable Costs per unit $57.28 Royalty % 3.50% Commission % 5.00% Breakeven Quantity 554,500 Unit Price x 554,500=6,059,000/(x - 57.28 - .035x - .05x) 554,500=6,059,000/(.915x-57.28) 554,500(.915x - 57.28)= 6,059,000 507,367.5x=37,820,760 Unit Price $74.54 2. Breakeven Retail Price Markup on Selling Price = (x - COGS)/ x Selling Price x Markup on Selling Price % 27.00% COGS $74.54 .27=(x - 74.55)/x .27x=x - 74.55 -.73x=-74.55 Selling Price $102.11 Selling Price= Cost of Goods Sold/ (1 - %Markup on Selling 3. Profit Goal Price Percent Profit 7.50% Profit Goal= Profit Goal Quantity * Unit Price * Percent Prof Profit goal = PGQ * Unit Price * .075 BEQ=Fixed Costs/ (Unit Price - Unit Variable Costs) BEQ=Fixed Costs/ [Unit Price - Unit Variable Costs in $ - (%Royalty * Unit Price) - (%Commission * Unit Price) Fixed Costs= Sales Manager's Salary + Advertising Expenses + Executive Salaries and Overhead Expenses Known Variable Costs per Unit = Packaging per unit + Electronics per Unit + Production Labor per Unit Unit Price= (Fixed Costs/Breakeven Quantity) + Unit VC in $ + (%Commission and %Royalty * Unit Price) PGQ= (Fixed Costs + Profit Goal)/[(1 - Royalty PGQ[(1- R&C%)Unit Price - Unit VC in $]=Fixed
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MarketingHw4-Final - Homework #4- Smart Baby Name: Sean...

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