1. Suppose you own a copy business that targets college students. A) Assume the following | Number of college students in the market: Average number of copies per student per year Your company's estimated share of the total market 25,000 125 13% SOLVE FOR THE FOLLOWING: Total annual market demand Estimated annual company demand Estimated monthly demand Estimated weekly demand B) Given the following for your copy business: Annual Expenses: Paper: Rent: Insurance: Advertising: Other Supplies: $ 4,062.50 $ 12,000 $ 2,500 $ 1,800 $ 5,000 Salaries: Hourly labor: Maintenance contract Utilities: $ 30,000 $ 62,400 $ 2,000 $ 2,400 Total Fixed Cost: Fixed Cost/unit: Total Variable Cost: Variable Cost/unit: C. Calculate the selling price per copy if you must have a markup of 25% on the selling price. D. What is the selling price per copy if you desire a 150% markup on cost? E. What is the markup on selling price with a $.50 selling price per copy? F. What is the markup on cost with a $.50 selling price? G. If you charge $.45 per copy, what is the highest your expenses can be and still maintain a 25% markup on selling price? H. If you charge $.45 per copy, what is the highest your expenses can be and still maintain a 150% markup on costs? 2. Using the information in question # 1 above, assume you will charge on average $.40 per copy. A) Calculate your monthly revenue. B) Assume you lower the price from $.30 to $.24 per copy and you demand increases to 10,812 copies weekly. Determine the elasticity of your demand. What can you infer about your market? C) Assume you raise the price from $.30 to $.45 per copy and your demand decreases by 1000 copies weekly. Determine the elasticity of your demand. What can you infer about your market? 3. Using the information in Question # 1 A and B above A) Compute the Breakeven for each of the following: 1. Total annual revenue of $182, 812.50 2. Total annual revenue of $121, 875 3. Total annual revenue of $97,500 B) Compute the BE at each of the 3 selling prices given in #1 A above with a profit goal of $27,000. C) Compute the BE at each of the 3 selling prices given in # 1 A with a profit goal of 10% of sales. D. What price are you going to charge for your product? What factors will influence your decision? 4. Channel Markups: (always solved using formula based on selling price - MU r) A manufacturer sells a $17.00 item to the wholesaler for $22.00. The wholesaler in turn sells it to the retailer for $28.00 and the retailer sells it to the public for $33.00. What is the markup at each level? What does the consumer pay for the item