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1. What are the unit requirements given the three parameters above? 2. Annasams annual unit sales average of 1,000 units for each line. Are there
1. What are the unit requirements given the three parameters above? 2. Annasams annual unit sales average of 1,000 units for each line. Are there any marketing decisions that should be made given the above results?
Marketing Management Section 3 Problems Break-Even Analysis Annasam Company is a producer of kayaks. There are two lines of kayaks: one for professional outfitters and the second for committed recreationalists. The cost structure is as follows: Price Line Professional $4,000 Line Amateur $2,800 $900,000 $2,000 .20 VC Des Contribution Margin $2,200 15 Compute the break-even units and break-even dollar contribution needed as follows: 1. If Annasam only sells the professional line. 500 units & $2,000,00 2. If Annasam only sells the amateur line. 1125 units & $3,150,000 3. If Annasam sells both lines in equal units). about 346 units Annasam is trying to woo investors to its business, but investors would like to see at least a 15% return on investment on the professional line and 20% return on the amateur line. 1. What are the unit requirements given the three parameters above? 2. Annasam's annual unit sales average 1,000 units for each line. Are there any marketing decisions that should be made given the above resultsStep by Step Solution
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