Homework Answers
Answer:
R&D Cost = $450000
Advertisement Cost = $600000
Other fixed Cost =$20,00,000
total fixed cost =$30,00,000
Market Size = 2950000
Market share = 55%
Sales volume = 2950000*.55=1622500
Fixed cost per unit for production and sales of 1622500 units =3000000/1622500=$1.84
Discount offered =$10
Discount redemption rate =50%
effective discount per unit =10*.5=$5
Variable cost per unit = $25
Total variable cost per unit = Effective discount + Variable cost per unit = 5+25=$30
Total cost per unit = Total Variable cost per unit + total fixed cost per unit = 30+1.84=$31.84
Customer Price =75$
Retailer Margin =35%
Retailer price=55.55
Wholesaler margin =25%
a. Wholesaler's price =$44.44
c. Therefore, the Company is going to make a contribution per drone sales. = Wholesale price per unit - per unit total cost
=44.44-31.84=$12.6
b. Operating Margin = 12.6/44.44= 28.35%
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