Clean capture for the manufacturer

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Reference no: EM132234748

Last year, consumers spent $1,200,000 on a product called Wipe-it-Clean. Wipe-it-Clean costs a retailer $2 and normal retail margins are 33 per cent for this kind of product. The manufacturer of Wipe-it-Clean is about to launch a nation-wide advertising campaign which will bring its fixed costs up to $200,000. Wholesaler margins are 25 per cent and manufacturer margins are 66 per cent. Margins are calculated as the percentage of each company's own selling price. What market share must Wipe-it-Clean capture for the manufacturer to break even? What market share must Wipe-it-Clean capture for the manufacturer to achieve a profit of $150,000?

Reference no: EM132234748

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