problem set 2

# problem set 2 - Name:NguyenBui BUSM341 Problemset2 1...

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

Name: Nguyen Bui BUS M 341 Problem set 2 1. 1.2 a. Dollar markup= 225-125= 100        b. Markup percentage on cost= 100/125=80%        c. Markup percentage on selling price= 100/225=44.45% 1.3 a. Dollar markup between retailer and wholesaler= 60*.2= 12 Cost the wholesaler charged the retailer= 60-12= 48 Dollar markup between wholesaler and manufacturer = 48*.15= 7.2 Cost the manufacturer charged the wholesaler= 48-7.2= 40.8 1.4 The selling price the manufacturer sells to retailers is X (X-50)/X=.3-> X= 50/.7= 71.43 The selling price the retailer sells to customer is Y (Y-71.43)/Y= .4-> Y= 119.05 1.5 a. The selling price the Advanced Electronics sells to retailers = 20- (20*.4)= 12 Contribution per unit= 12- (2.5+2.25) = 7.25 Contribution margin = 7.25/12= 60.42% b. Break-even volume in units= (500000+ 200000)/7.25= 96,552     break- even  volume in dollar= 96,552* 12= 1,158,624 c. Volume in DVD units = (500000+200000)/(7.25- 12*.20)=700000/4.85=144 330 units Volume in DVD dollars= 144 330*12=\$1,731,960 d. Net profit= 5,000,000*7.25-500000-200000=\$35,550,000 2.    3.1 a. Increase in sales needed to break- even= 300000/.25= 1,200,000

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 ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern