Question

Hassan Ben Sober produces Frozen Falafel in 12 count packages. He had sales of $5.0 Million last year, and his gross profit was $3.0 Million. Sales for the total category of froze falafel were $35 Million. What was Hassan's market share? Company Sales 5,000,000 = 1428='77x100=14.3 Total Sales 35,000,000 142 14.3% HBS Falafel exhibited the following data: Retail Price Per Package Retailer Margin Cost of Goods Sold Shipping and Packaging Sales Commissions Advertising Salaries Overhead $15.00 25% 30% 10% 5% $1.5 Million $2.0 Million $1.5 Million Variable cost Variable cost Yaniable cost Variable Cost Eixed cost 1 Fixed cost 76A.. What will be HBS Break Even in Units? Fixed cost Contribut per unit Contribution-sales price-ve 76B. What will be HBS Break Even at Manturer's Prices? Show your work, so if you do the steps right but calculate wrong, you will get some credit. dohoat Remember that Cost of Goods Sold and other variable costs for the retailer margin.

Please help me with 76 A & B.

Answer 1

Variable Cost Margin = 30% + 10% + 5% = 45%

Contribution Margin = 100% - 45% = 55%

Contribution = $ 15 * 55% = $ 8.25

Fixed Cost = 1.5 + 2 + 1.5 = $ 5 million

76A) Break even = Fixed Cost / Contribution = $ 5 millions / $ 8.25

= 606,061 units

76B) Break even at manufacture's cost = Fixed Cost /Contribution Margin = $ 5 million / 55% = $ 9,090,915

Answer 2

Yes!

1. I am Hassan ben Sober

2. Shemp, "Yeah, I've a few too many myself!"