advertise drink X as a great fun drink Which product should you compare drink X

Advertise drink x as a great fun drink which product

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advertise drink “X’ as a “great fun drink”. Which product should you compare drink ‘X” to?A.CokeB.Grape JuiceC.Dr PepperD.Cranberry JuiceE.Pepsi
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Break Even Analysis
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Breakeven analysis!Fit DeckShark Tank Season 5 Week 15
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Exhibit 9.6HomeownersBusinessesSize750001000Adoption1%20%Price100500Usage/ year1220Margin60%80%Fixed Costs4000001000000Profit??Benefits-size-adoption-priceCosts-margin-fixed costs
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Break Even AnalysisRelationships between cost, price, revenue, profitBreak even point = # of units where revenues = cost (or, profits = 0)Key components:Fixed cost (FC)Variable cost (VC)Price (P)
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Key Formulae - 1[Q * ( P-VC)] – FC[Q * P * (Profit margin)] – FCSet at “0”, solve, and get break-even “Q”Insert values and, for a given “Q”, get value of profit/ loss
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Key Formulae - 2Profit = [Q * ( P-VC)] – FCIf Profit = 0:BreakevenQ = FC / (P-VC)
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Solving Exhibit 9.6[Q * P * (Profit margin)] – FC 75000 *1%*12= 900010060%400000Homeowners9000 *100*60%=540,000400000140,000HomeownersSize75000Adoption1%Price100Usage/ year12Margin60%Fixed Costs400000Profit?
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Breakeven analysis!Fit DeckShark Tank Season 5 Week 15
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Fit Deck – Last yearVC = $2Q = 55,000Q*P = $640,000P = (640,000/55,000) = $11.63 ($14.95??)Profit = $0Profit = [Q * ( P-VC)] – FC0 = [55000*(11.63 – 2)] – FCFC = [55000*(11.63 – 2)] = $529,650
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Fit Deck – Robert’s mathVC = $2 ; P = $14Q*P = $700,000Q = (700,000/14) = 50,000Cost of goods = Q*VC = 50,000*2 = $100,000Profit = [Q * ( P-VC)] – FCProfit = Q*P – Q*VC - FC100,000 = 700,000 – 100,000 - FCFC = 700,000 – 100,000 – 100,000 = $500,000
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Calculate BreakevenAssume all remains unchanged, what is breakeven quantity for [homeowner] segment?A.About 5000 (4750-5250)B.About 6500 (6250-6750)C.About 8000 (7750-8250)HomeownersSizeAdoptionPrice100Usage/ yearMargin60%Fixed Costs400000Profit?
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Profit Potential?
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  • Spring '10
  • Ashwani
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