Marketing Maths

Math assignment

Wenshan Wei #0669795

1.4

cost

price = —————

(1 markup)

cost $50

Manufacturer’s price = ————— = ————— = $71.43

(1 markup) (1 0.3)

cost $71.43

Retailer’s price = ————— = ————— = $119.05

(1 markup) (1 0.4)

1.5

A）Advanced’s price = retail price (retail price percentage retailer margin) = $20 ($20 0.4) = $12.

Unit variable costs = $2.50 + $2.25 = $4.75

the contribution per unit = $12 $4.75 = $7.25

Contribution margin=unit contribution/price=$7.25/$12=60.4%

B） Breakeven volume = fixed costs/unit contribution=$700,000/$7.25 = 96,552 units

Breakeven sales = breakeven volume price = 96,552 units $12 = $1,158,624

fixed costs

C) Unit volume = ——————————————

price variable cost (0.2 price)

$700,000

= —————————— = 144,330 units

$12 $4.75 (0.2 $12)

Sales necessary =...