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MarketingHW4

# MarketingHW4 - Name Sean Lyden 1 Breakeven Manufacturer's...

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SmartBaby Name: Sean Lyden 1. Breakeven Manufacturer's Price BEQ=Fixed Costs/ (Unit Price - Unit Variable Costs) Fixed Costs ### 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 \$102.12 Selling Price= Cost of Goods Sold/ (1 - %Markup on Selling Pr 3. Profit Goal Price Percent Profit 7.50% Profit Goal= Profit Goal Quantity * Unit Price * Percent Profit Profit goal = PGQ * Unit Price * .075 Unit Price \$81.20 4. New Profit Goal Price Fixed Costs ### Known Variable Costs per Unit \$57.28 Profit Goal Quantity 590,700 New Profit Goal Quanity= Old Profit Goal Quanity + New Quan Unit Price \$80.41 5. Major Retailers' Selling Price Selling Price x Markup on Selling Price % 27.00% COGS \$80.41 Selling Price \$110.15 Selling Price= Cost of Goods Sold/ (1 - %Markup on Selling Pr 6.Small Retailers' Selling Price Markup on Cost %= (Selling Price - COGS)/COGS Markup on Cost % 12.00% COGS \$80.41

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MarketingHW4 - Name Sean Lyden 1 Breakeven Manufacturer's...

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