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(1) Firm X is considering increasing its advertising budget by $24,000. Firm X generates sales of $10 million per year with an average 15% contribution margin. How much would annual sales have to increase for Firm X to break even on this additional advertising investment?
(2) A retailer buys a widget from a wholesaler for $15 and sells it to a consumer for $20. What is the retailer’s margin? What is the retailer’s markup?
(3) Seasons, Inc. manufactures holiday wreaths and sells them directly to retailers for $5.00. The manufacturer’s cost information is as follows: Variable cost: $3.35/wreath; Advertising and promotion: $300,000; Overhead: $700,000. Calculate the following:
a) Contribution margin for the manufacturer (both in $ and %)
b) Break-even volume in units and dollars
c) Volume in units and dollar sales necessary if Seasons’ profit goal is $500,000
d) Net profit if 6 million wreaths are sold.
Two employees perform the same job, and each received exemplary performance ratings. Is it fair to give one employee a smaller percentage merit because his pay falls within the third quartile
Four potential problems with a "traditional" overhead allocation. List and describe four potential problems with a "traditional" overhead allocation system.
What is the probability that the project tilll take longer than 46 weeks? The project manager wishes to set the due date for the completion of the project so that there is a 90% chance of finishing on schedule. Thus, there would only be a 10% chan..
As a result, Unverferth was able to eliminate costly paper catalogs also gain the ability to give up-to-the-minute information to its dealers. This incremental change which was aided by supplier involvement was an example of the approach to innova..
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Consider a guessing game with N people, and the person closest to 20 plus one-half of the average is awarded the prize, which is split in the event of a tie. The range of guesses is from 0 to 100. Show that 40 is Nash equilibrium. (Hint: Suppose that..
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The expected return for the general market is 12.8 percent, and the risk premium in the market is 9.3 percent. Tasaco, LBi\1, and Exxos h,ve bet,s of 0.864, 0.693, and 0.575, respectively. What are the corresponding required rates of return for the ..
Discuss the characteristics of effective teams? What are the challenges managers face when managing global teams?
What are possible internal and external changes that may require changing the marketing organization design?
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