MarketingHw4-Final

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

This preview shows pages 1–2. Sign up to view the full content.

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

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 4

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

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online