Product Z is sold to wholesalers for $5.43 and sold to end consumers for $9.99. The size of the market is $34,000,000 annually (based on retail sales); product Z’s share (in dollars) of this market is 28%. The fixed costs involved in manufacturing and managing Product Z are $1,200,000 and the variable costs involved in manufacturing and managing Product Z are $0.91 per unit. The advertising budget for Product Z is $1,000,000. Salespeople are paid entirely by an 8.5% commission based on the manufacturer’s selling price. Product Z’s manufacturer is considering three alternative strategies for increasing sales: increasing their ad spend, lowering their price, or increasing the sales commission.
1. Calculate the total sales volume (in units) needed to maintain the current profit level if the manufacturer doubles its advertising expenditures.
2. Calculate the market share needed to maintain the current profit level if the manufacturer doubles its advertising expenditures.
Product Z is sold to wholesalers for $5.43 and sold to end consumers for $9.99. The...
Product Z is sold to wholesalers for $5.43 and sold to end consumers for $9.99. The size of the market is $34,000,000 annually (based on retail sales); product Z’s share (in dollars) of this market is 28%. The fixed costs involved in manufacturing and managing Product Z are $1,200,000 and the variable costs involved in manufacturing and managing Product Z are $0.91 per unit. The advertising budget for Product Z is $1,000,000. Salespeople are paid entirely by an 8.5% commission...
Please help answer 7-10. 5 and 6 are worked out already. posted answers for reference Product Z is sold to wholesalers for $5.43 and sold to end consumers for $9.99. The size of the market is $34,000,000 annually (based on retail sales); product Z’s share (in dollars) of this market is 28%. The fixed costs involved in manufacturing and managing Product Z are $1,200,000 and the variable costs involved in manufacturing and managing Product Z are $0.91 per unit. The...
The previous questions: The carrying case would be sold to the end consumer for $39.99. Lisa will not sell directly to the consumer, but will use a wholesaler who will sell to a retailer (e.g., university book stores). The retailer’s margin is 50% and the wholesaler’s margin is 12%. The fixed cost involved in manufacturing the cases is $280,000 and the variable costs are $6.25 per case. Lisa is considering an advertising budget of $300,000. Miscellaneous variable costs (e.g., shipping...
Product X is a consumer product with a retail price of $9.95. Retailer's margins on the product are 40% and wholesaler's margins are 8% (based on the selling price). The size of the market is $300,000,000 annually (based on retail sales); product X' share (in dollars) of this market is 17.3% The fixed costs involved in manufacturing Product X are $1,400,000 and the variable costs are $0.86 per unit. The advertising budget for Product X is $2,000,000. Miscellane- ous variable...
Product X is a consumer product with a retail price of $9.95. Retailer's margins on the product are 40% and wholesaler's margins are 8% (based on the selling price). The size of the market is $300,000,000 annually (based on retail sales); product X' share (in dollars) of this market is 17.3% The fixed costs involved in manufacturing Product X are $1,400,000 and the variable costs are $0.86 per unit. The advertising budget for Product X is $2,000,000. Miscellane- ous variable...
Product X is sold to wholesalers for $2.16 and sold to end consumers for $5.94. The size of the market is $420,000,000 annually (based on retail sales); product Y’s share (in dollars) of this market is 17.3%. The fixed costs involved in manufacturing Product Y are $1,400,000 and the variable manufacturing costs are $0.86 per unit. The advertising budget for Product Y is $1,200,000. Miscellaneous variable costs (e.g., shipping and handling) are $0.12 per unit. Product manager’s salary and expenses...
Lisa, a perceptive student in the SCSU MBA program, noted the popularity of the HP-12c calculators used by students in her finance classes. She also saw that certain business school professors doggedly carried these calculators around for decades like some kind of religious talisman. She saw an opportunity and decided to start a company selling accessories that support the HP-12c lifestyle and that make the lives of HP-12c lovers more enjoyable and fulfilling. Lisa is considering several products to include...
Lisa, a perceptive student in the SCSU MBA program, noted the popularity of the HP-12c calculators used by students in her finance classes. She also saw that certain business school professors doggedly carried these calculators around for decades like some kind of religious talisman. She saw an opportunity and decided to start a company selling accessories that support the HP-12c lifestyle and that make the lives of HP-12c lovers more enjoyable and fulfilling. Lisa is considering several products to include...
Lisa, a perceptive student in the SCSU MBA program, noted the popularity of the HP-12c calculators used by students in her finance classes. She also saw that certain business school professors doggedly carried these calculators around for decades like some kind of religious talisman. She saw an opportunity and decided to start a company selling accessories that support the HP-12c lifestyle and that make the lives of HP-12c lovers more enjoyable and fulfilling. Lisa is considering several products to include...
Fred Flintstone has just become the product manager for Yabba Dabba Doo, a consumer packaged product with a retail price of $2.00. Retail margins on the product are 33%, while wholesalers take a 12% margin. Yabba and its direct competitors sell a total of 40 million units annually, and Yabba has 24% market share of this total. Variable manufacturing costs for Yabba are $0.09 per unit. Fixed manufacturing costs are $1,800,000. The advertising budget for Yabba is $1,000,000. The product...