User Account

All Pages

Breakeven Analysys, Marketing Management

Assignment Help:
Breakeven Analysis

Campbell Soups has set up a factory in Hong Kong at an estimated cost of $3.1 Million. In the first few years of operation, its product line will consist of duck soup and egg noodle soup to be sold in 16 oz. cans. The factory can make 900,000 cans of soup a month (any combination of the two varieties).

Cost estimates for the product line is as follows:

Material cost/can: 5 cents (egg noodle), 20 cents (duck)
Labor cost per can: 18 cents (both types of soup)
Promotional costs: 10% of sales
Product line launch: $720,000 (covers both soups)
Administrative costs: $230,000 per year

Campbells will price the duck soup at $1.20 per can, and the egg noodle soup at $0.70 per can.
It expects to sell twice as many cans of duck soup as egg noodle soup.

(a) At break-even, how many cans of each type of soup would Campbell soups have sold?
(b) How soon can Campbell Soups break-even, assuming it can operate at full factory capacity?

(Hint: First calculate the unit contribution margin for each soup; then use the sales ratio to figure out how many units of each soup Campbell’s would sell – this will allow you to calculate TOTAL contribution from both soups. Subtract any recurring fixed costs from this number, and then figure out time to BE on the one-time fixed costs).

Related Discussions:- Breakeven Analysys

Marketing as a discipline, Define the marketing by as a Discipline. Ma...

Define the marketing by as a Discipline. Marketing as a Discipline: The subject of marketing has involved out of business that has derived its existence by economics. But

Marketing mix Strategy Assignment, How to start and finish

How to start and finish

Nelson mathematics sharing and grouping, use the equation of 42 divded by 7...

use the equation of 42 divded by 7 to write 2 promblems one about sharing the other about grouping

What do you meant by the term macro environment, Question 1: (a) Expla...

Question 1: (a) Explain what you understand by the term marketing concept and how it evolved from the production concept and the sales concept? (b) How does the marketing

Service offered by ad-agency, Service Offered by Ad-agency :- These days ad...

Service Offered by Ad-agency :- These days ad agencies give wide range of services like planning and preparation of ad and execution of ad with selection of media, sales promotion,

Marketing, identify and briefly describe four treands in the macro/market

identify and briefly describe four treands in the macro/market

Essay writing, Good Day, is there a possibility to buy full essay on digita...

Good Day, is there a possibility to buy full essay on digital marketing at workplace for 3000 words? Thank you in advance. Dorota

Calculate the market portfolio, (a)   Since APPL and MSFT account for the e...

(a)   Since APPL and MSFT account for the entire large cap technology component of S&P 500 and their proportion of index is based on their weights, this large cap technology sector

What is providing value cost balance, What is providing value cost balance?...

What is providing value cost balance? Providing Value Cost Balance: Customers expect exact benefits by the product. Marketers require adding as many benefits to their pr

1, 5

5

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd