$3.$ The Pointer Appliance Company is investigating the additional of a new and improved

pulsating blender to its line of consumer appliances. The product chops, grinds, grates

and blends smoothies twice as fast as all other blenders on the market. It has a $10$ year

warranty on the motor and offers a replacement $5$ cup glass blender cup for $$10\mathrm{.}99.$ The

blender is going to require additional expenditures for the production line on the part of

the Pointer Company. Management wants to determine what to price the blender at$.$

The total fixed cost associated with manufacturing the blenders is $$575,000.$ The

variable cost is $$23\mathrm{.}99$ per unit. Given the costs for adding the blender, management is

considering selling the blender at one of these prices: $$30\mathrm{.}99,$ $$44\mathrm{.}99$ and $$59\mathrm{.}99.$

Calculate the breakeven point in units at each of the selling prices: $$30\mathrm{.}99,$ $$44\mathrm{.}99$ and

$$59\mathrm{.}99$ and show the calculations. Through your research you know that this is a tough

competitive market with many competitors. Most competitors have between $2-8\%$ of the

market and the market appears to be growing at a $5\%$ rate per year. The total market for

blenders of this type was $2,500,000$ units last year. Given that the market leader is selling

its blender for $$53\mathrm{.}99,$ which price would you recommend and why?

$4.$ Yoplait has new line of Greek yogurt in a $9$ oz size. The Marketing Managers plan to

test market the product in one small market for three weeks. They has calculated the

cost and projected sales for each of the different flavors: Plain cost is $\mathrm{.}55$ each with a

projected sales of $12,000$ units, Strawberry cost per unit is $\mathrm{.}60$ with a projected sales of

$15,000$ units, Blueberry cost are $\mathrm{.}68$ per unit with a projected sales of $9,000$ units. Each

yogurt product will retail at the same price. Using the average cost pricing and a $35\%$

markup what will Yoplait price these product at the retail level

This is a focus on average cost pricing