View the step-by-step solution to:

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...

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 ___________________________

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question