Please see the attachment for the details. I am seeking the right formulas and some help in answering these 6 questions. I have search the internet for examples and coming up with no luck. I appreciate your help in attaining the solutions to these questions.

As the Marketing Manager for the Zig brand of microwave ovens in a large consumer products company you must answer the questions found below with the following financial information regarding your product.

Total market for Microwave Ovens 5 million units

Current yearly sales of Zig brand 750,000 units

Direct factory labor $13.20 per unit (VC)

Raw materials

Salesperson's Commissions $50 per unit (VC)

10% of Manufactures Selling Price (VC)

All factory and administrative overheads $2,000,000 (FC)

Retail selling price $300 per unit

Retailers margin 20%

Jobber's margin 20%

Wholesaler's margin 15%

Sales travel expenses $800,000 (FC)

Advertising $3 million (FC)

Distribution channel is Manufacturer Wholesaler Jobber Retailer

Note:

In order for you have the correct answers for the following six questions you must determine the selling price for the manufacturer, The selling price for the manufacturer is $163.20. Please show all calculations that end up with the selling price based on the information above.

Questions

1. What is the contribution per unit for the Zig brand? Answer ____________________

2. What is the break even volume in units and in dollars? Answer ___________________

3. What market share does the Zig brand need to break even? Answer _______________

4. What is the current total contribution? Answer ________________________________

5. What is the current before tax profit of the Zig brand'? ___________________________

6. What market share must Zig obtain to contribute a before tax profit of $100 million?

Answer ___________________________

See Notes Below

Financial Analysis Exercise

As the Marketing Manager for the Zig brand of microwave ovens in a

large consumer products company you must answer the questions found

below with the following financial information regarding your product.

Total market for Microwave Ovens 5 million units

Current yearly sales of Zig brand 750,000 units

Direct factory labor $13.20 per unit (VC)

Raw materials

Salespersonâs Commissions $50 per unit (VC)

10% of Manufactures Selling Price (VC)

All factory and administrative overheads $2,000,000 (FC)

Retail selling price $300 per unit

Retailers margin 20%

Jobber's margin 20%

Wholesalerâs margin 15%

Sales travel expenses $800,000 (FC)

Advertising $3 million (FC)

Distribution channel is Manufacturer ( Wholesaler ( Jobber ( Retailer

Note:

In order for you have the correct answers for the following six

questions you must determine the selling price for the manufacturer, The

selling price for the manufacturer is $163.20. Please show all

calculations that end up with the selling price based on the information

above.

Questions

1. What is the contribution per unit for the Zig brand? Answer

____________________

2. What is the break-even volume in units and in dollars? Answer

___________________

3. What market share does the Zig brand need to break even? Answer

_______________

4. What is the current total contribution? Answer

________________________________

5. What is the current before-tax profit of the Zig brand'?

___________________________

6. What market share must Zig obtain to contribute a before-tax profit

of $100 million?

Answer ___________________________

See Notes Below

Financial Basics for Marketing (A)

PAGE 2

As the Marketing Manager for the Zig brand of microwave ovens in a large consumer products company you must answer the questions found below with the following financial information regarding your product.

Total market for Microwave Ovens 5 million units

Current yearly sales of Zig brand 750,000 units

Direct factory labor $13.20 per unit (VC)

Raw materials

Salesperson's Commissions $50 per unit (VC)

10% of Manufactures Selling Price (VC)

All factory and administrative overheads $2,000,000 (FC)

Retail selling price $300 per unit

Retailers margin 20%

Jobber's margin 20%

Wholesaler's margin 15%

Sales travel expenses $800,000 (FC)

Advertising $3 million (FC)

Distribution channel is Manufacturer Wholesaler Jobber Retailer

Note:

In order for you have the correct answers for the following six questions you must determine the selling price for the manufacturer, The selling price for the manufacturer is $163.20. Please show all calculations that end up with the selling price based on the information above.

Questions

1. What is the contribution per unit for the Zig brand? Answer ____________________

2. What is the break even volume in units and in dollars? Answer ___________________

3. What market share does the Zig brand need to break even? Answer _______________

4. What is the current total contribution? Answer ________________________________

5. What is the current before tax profit of the Zig brand'? ___________________________

6. What market share must Zig obtain to contribute a before tax profit of $100 million?

Answer ___________________________

See Notes Below

Financial Analysis Exercise

As the Marketing Manager for the Zig brand of microwave ovens in a

large consumer products company you must answer the questions found

below with the following financial information regarding your product.

Total market for Microwave Ovens 5 million units

Current yearly sales of Zig brand 750,000 units

Direct factory labor $13.20 per unit (VC)

Raw materials

Salespersonâs Commissions $50 per unit (VC)

10% of Manufactures Selling Price (VC)

All factory and administrative overheads $2,000,000 (FC)

Retail selling price $300 per unit

Retailers margin 20%

Jobber's margin 20%

Wholesalerâs margin 15%

Sales travel expenses $800,000 (FC)

Advertising $3 million (FC)

Distribution channel is Manufacturer ( Wholesaler ( Jobber ( Retailer

Note:

In order for you have the correct answers for the following six

questions you must determine the selling price for the manufacturer, The

selling price for the manufacturer is $163.20. Please show all

calculations that end up with the selling price based on the information

above.

Questions

1. What is the contribution per unit for the Zig brand? Answer

____________________

2. What is the break-even volume in units and in dollars? Answer

___________________

3. What market share does the Zig brand need to break even? Answer

_______________

4. What is the current total contribution? Answer

________________________________

5. What is the current before-tax profit of the Zig brand'?

___________________________

6. What market share must Zig obtain to contribute a before-tax profit

of $100 million?

Answer ___________________________

See Notes Below

Financial Basics for Marketing (A)

PAGE 2

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