ps1 - Name: Nguyen Bui Class: Bus M 341 Problem set 1 1....

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Name: Nguyen Bui Class: Bus M 341 Problem set 1 1. 2.1> market potential= 50mil*3*25= 3750 mil If the company desires only 105 of the market share, its market potential 3750*.1= 375mil Number of units the firm need 375000000/25= 15000000 units 2. 2.2>a. Net sales were 20mil % of sales Net sales(mil) 20 100% COGS 8 40% Gross margin 12 Marketing expense sales expense 4 Sales salary+5% of sale promotion expense 3 freight 2 9 10% General and Administrative expense managerial and salary expense 2 indirect overhead 3 5 Net profit before tax -2 -10% b. Net sales were 40mil % of sales Net sales(mil) 40 100% COGS 16 40% Gross margin 24 Marketing expense sales expense 5 Sales salary+5% of sale promotion expense 3 freight 4 12 10% General and Administrative expense managerial and salary expense 2 indirect overhead 3 5 Net profit before tax 7 17.5% c. % variable cost 40%+10%+5%= 55% of sales--> Contribution margin= 1-.55= .45 Fixed cost= 3+3+2+3= 11mil Break-even sales= 11/.45=\$24.444 mil 3. 2.3>a. Gross margin percentage= gross margin/net sales= 24/40= .6

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b. Net profit percentage= net profit/net sales= 7/40= .175
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This note was uploaded on 11/22/2011 for the course MARKETING BUS M 341 taught by Professor Stevehuff during the Fall '11 term at BYU.

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ps1 - Name: Nguyen Bui Class: Bus M 341 Problem set 1 1....

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