Region along with the allocated product development expense

Assignment Help Operation Management

Reference no: EM131176235

The variable cost in NewShoes is the unit cost of the product. Fixed costs are the marketing expenses for a region along with the allocated product development expense. Applying the formula with a variable cost of $40, and fixed expenses of $3,500,000, the break-even price for 100,000 units would be: break-even price = $40 + $3,500,000 / 100,000 = $40 + $35 = $75 1. Using the fixed expenses and projected sales from the example, what would the break-even price be if unit cost is $35? 2. If the break-even price is $75, and your target return on sales is 20%, what is the selling price? − Use the following data for questions 3 & 4 − units sold $100.000 consumer promotions $1,800,000 unit cost $40 personal selling 5 salespeople @ $80,000 each target return on sales 10% dealer promotions $1,200,000 advertising $1,500,000 product development $700,000 3. Calculate the break-even price. 4. What would the selling price have to be to get the target return? 5. What other factors besides break-even should you consider before setting price?

Reference no: EM131176235

Questions Cloud

Use of a debit card for the collections of tolls : A toll tunnel has decided to experiment with the use of a debit card for the collections of tolls. Initially, only one lane will be used cars are estimated to arrive at this experimental lane at the rate of 750 per hour, following Poisson distributio..

Holding onto small portion of the widget market : ABC Company, Inc. has been in existence for 10 years. They have 50 employees, currently have one location, and they only manufacture one product: widgets. They have managed to stay in business by holding onto a small portion of the widget market, but..

What differentiates violent crime investigations : What differentiates violent crime investigations from white collar crime investigations, in terms of evidence gathered? How can you build-in safeguards to prevent or mitigate false allegations in future fraud examinations?

Discuss the pros and cons of the affordable care act : Discuss the pros and cons of the Affordable Care Act. What is your opinion? Has the act been successful in achieving the goal of quality, affordable healthcare for all Americans? Do you think the new law will succeed in the long term? Or will it even..

Region along with the allocated product development expense : The variable cost in NewShoes is the unit cost of the product. Fixed costs are the marketing expenses for a region along with the allocated product development expense. Applying the formula with a variable cost of $40, and fixed expenses of $3,500,00..

Components for sale to refrigeration companies : Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (in minutes) required on each machine are as follows. Machine Component Shaper Grinder 1..

How an understanding of nursing-sensitive indicators : A week after Mr. J was admitted to the hospital, his daughter, who lives eight hours away, came to visit. She found him restrained in bed. While Mr. J was slightly sleepy, he recognized his daughter and was able to ask her to remove the restraints so..

Prepare an executive summary and delivery system : In a narrative format, discuss the key facts and critical issues presented in the case. Next, Use your favorite search engine and learn more about Android, Apple, DoCoMo, Palm, and similar content delivery systems for smart phones. Prepare an executi..

Learned about contract law : Share with us about any contract with which you're familiar, and why it is/isn't/should be/shouldn't be valid and enforceable, based upon what you've learned about contract law, so far.

User Account

All Pages