BCOR2400-HW3

BCOR2400-HW3 - Name: Ashley Ritchie Question 1-Unit...

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Name: Ashley Ritchie 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 Pric 45% Cost = Selling Price - (markup%)(Selling Price) $7.30 Wholesaler $8.90 Wholesaler's Markup % on Cost: 22% Cost = Selling Price/ (1 + markup%) $6.06 Manufacturer $7.30 Manufacturer's Price Type of Variable Cost - Variable Cost 1 $4.89 Manufacturing Variable Cost Given - Variable Cost 2 $0.88 Sales Commission Cost 12% Commission = (Price)(Sales Commission%) - Variable Cost 3 $0.29 Administrative Cost (per unit) Given Unit Contribution $1.24 Unit Contribution = Manufacturer's Unit Price - All Unit Variable Costs Question 2--Breakeven Point in Units Type of Fixed Cost Fixed Cost 1 $105,000.00 Salary Expense Given Fixed Cost 2 $757,000.00 Advertising Expense Given Fixed Cost 3 $895,000.00 Manufacturing Cost Given Total Fixed Costs $1,757,000.00 Sum of all fixed costs Breakeven Point 1,418,342.00 Breakeven Point = Fixed Cost / Unit Contribution Question 3--Breakeven Market Share Industry Sales $32,600,000.00 Given Breakeven Market Share 4.35% Breakeven Market Share = Breakeven Quantity / Industry Sales Question 4--Swingline 747 Classic 2007 Profit Swingline 747 Market Share 4.90% Given 2007 Industry Sales $32,600,000.00 Given Unit Sales $1,597,400.00 Unit Sales = (Market share)(Industry Sales) Total Contribution $1,978,811.98 Total Contribution = (747 Market Share x Total Market)(Unit Contribution) Total Fixed Costs $1,757,000.00 Given
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Profit $221,811.98 Profit = Total Contribution - Fixed Costs Question 5--Breakeven Point in Units, 2008 Type of Fixed Cost Fixed Cost 1 $105,000.00 Salary Expense Given Fixed Cost 2 $1,230,000.00 Advertising Expense Given Fixed Cost 3 $895,000.00 Manufacturing Cost Given Total Fixed Costs $2,230,000.00 Sum of all fixed costs Breakeven Point 1,800,173.00 Breakeven Point = Fixed Cost / Unit Contribution Question 6--Number to Sell for Same Profit as in 2007 Swingline 747 Market Share
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BCOR2400-HW3 - Name: Ashley Ritchie Question 1-Unit...

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