Question
1. Jenny is planning to expand her business by taking on a new product. She can purchase the new product at a cost of $1.8
1. Jenny is planning to expand her business by taking on a new product. She can purchase the new product at a cost of $1.8 per unit. To market this new product, she would need to spend$1380on advertising each month. She is not sure how she should price her product and is asking for your help.If she chooses a price of $16.8 per unit, how many units does she need to sell to break even? Show the calculation.
2. Jenny is planning to expand her business by taking on a new product. She can purchase the new product at a cost of $1.8 per unit. To market this new product, she would need to spend $1380 on advertising each month. She is not sure how she should price her product and is asking for your help.If she chooses a price of $16.8 per unit, what will be the break-even point in sales dollars?Show the calculation.
3. Jenny is planning to expand her business by taking on a new product. She can purchase the new product at a cost of $1.8 per unit. To market this new product, she would need to spend $1380 on advertising each month. She is not sure how she should price her product and is asking for your help.If she chooses a price of $16.8 per unit, what will be the contribution rate per unit?Show the calculation.
Note: leave 8 decimals in your final answer to receive the full mark.
4. Jenny is planning to expand her business by taking on a new product. She can purchase the new product at a cost of $1.8 per unit. To market this new product, she would need to spend $1380 on advertising each month. She is not sure how she should price her product and is asking for your help.If she estimates that she can sell 500 units when she chooses a price of $4.56 per unit, what will be the total costs?Show the calculation.
Consider the fixed costs (FC) and total variable costs (TVC) components. Show the calculation.
5. Jenny is planning to expand her business by taking on a new product. She can purchase the new product at a cost of $1.8 per unit. If she estimates that she can break even with selling 450 units when she chooses a price of $11 per unit, what is the most she can spend on advertising (and still break even with selling 450 units)?Show the calculation.
Consider solving for the fixed costs given the information about the BE units. Show the calculation.
6. Jenny is planning to expand her business by taking on a new product. She can purchase the new product at a cost of $1.8 per unit. If she chooses a price of $15 per unit and can generate $3,000 in break-even point in sales dollar, what is the most she can spend on advertising? Show the calculation
Consider what the BE units or the BE sales are in this case which will help you find the fixed costs (FC). Show the calculation
Note: use 8 decimal places when performing the calculations,
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