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

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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
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