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Advanced Electronics manufactures DVDs and sells them directly to retailers who typically sell them for $20. Retailers take a 40 percent margin based on the retail selling price. Advanced's cost information is as follows:DVD package and disc$2.50/DVDRoyalties$2.25/DVDAdvertising and promotion$500,000Overhead$200,000Calculate the following:a. contribution per unit and contribution marginb. break-even volume in DVD units and dollarsc. volume in DVD units and dollar sales necessary if Advanced's profit goal is 20 percentprofit on salesd. net profit if 5 million DVDs are sold
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What is the retailer's markup in dollars and what is the wholesale price, what is the manufacturer's price?
Discuss the concept of perceived value and its importance to consumer behaviour and marketing and discuss the theory and then give practical examples.
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