3 . Compute the following for Michigan Electronics, Inc (ME)/Extensia: (Total 12 points)

a. retail price of Extensia (2 pts)

b. retailers margin percent (%) on Extensia (1 pt)

c. contribution per unit earned by Michigan Electronics (1 pt)

d. Michigan Electronics contribution margin (1 pt)

e. Michigan Electronics breakeven volume in units (1.5 pts)

f. Michigan Electronics breakeven volume in dollars (1.5 pts)

g. Michigan Electronics total contribution at the forecasted level of sales (2 pts)

h. Michigan Electronics breakeven share of market, i.e. market share the company will obtain at its breakeven point (2 pts)

Document1 Q Search in Document Home Insert Design Layout References Mailings Review Vievw T AaBbcDdEe AaBbccDdEe AaBbCcD AaBbCcDdEAaBbC AaBbCcDdEe AaBbCcDdEe AaBbcDdEe AaBbCcDdEe AaBbCcDdEe AaBbCcDe AaBbCcDdEE AaBbC AaBbCcDdEE AaBbCcDdEe AaBbCcDdEe Styles Pane Paste Normal No Spacing Heading 1 Heading 2 Title Subtle Emph Emphasis 3) The following data pertain to costs and revenue estimates for a proposed line extension (Extensia) by Michigan Electronics, Inc. (NOTE: The product is sold only through retailers. No wholesalers) Costs: Ingredients (per unit) Packaging (per unit) Manufacturing (per unit) Market size & revenue estimates $10.50 Total market size (in units) 2,000,000 S220,000,000 250,000 S5.40 Total market size (in retail dollars) S3.50Forecasted sales of Extensia (in units) $4.00 Sellin S0.60 Selling price to retailers (i.e. revenue received by Michigan Electronics, Inc.) Delivery (per unit) $60.00 Miscellaneous (per unit) Fixed manufacturing overheads allocated to Extensia General office overheads allocated to Extensia Advertising. & promotion expenses S500,000 S500,000 $2,000,000 nsi Page 1 of 1 0 Words English (US) 149%