31. The Internationally known shoe maker ZEUS makes only a Hiking / Climbing shoe known as the Avalanche. Zeus works with the channel which in this case includes a retailer, a wholesaler and an agent. The margins (Gross Margins) for the channel are expressed as 35/15/5. The unit Price in the retail stores is $120. Calculate the variable costs and prices within the channel as well as the price Zeus uses to sell to their agent. Show your work (3 points) Retailers Wholesalers Agent Zeus Price/Unit $120 Variable Cost/unit Contribution Margin $ Gross margin % 35% 15% 5% Calculate the Variable cost/ unit for the retailers (.5 Points) 32. Retailers Wholesalers Agent Zeus Price/Unit $120 Variable Cost/unit Contribution Margin $ Gross margin % 35% 15% 5% Show the Retail Price for the Wholesalers (.5 Points) Then Skip a line Calculate the Variable cost/ unit for the Wholesalers (.5 Points) 33. Retailers Wholesalers Agent Zeus Price/Unit $120 Variable Cost/unit Contribution Margin $ Gross margin % 35% 15% 5% Show the Retail Price for the Agent (.5 Points) Then Skip a line Calculate the Variable cost/ unit for the Agent (.5 Points)) Then Skip a line Show the Retail Price for Zeus (.5 Points) 34. Due to later market pressures the retail price drops and the impact on Zeus's price to its agent is revised. It will now be $60.00 The TAM (Total Available Market) for all shoes in the US is SOM. pairs of any kind of shoes. The SAM (Served Available Market) is 10M. polrs for climbing shoes. Zeus's market share is 8%. All questions from here on have to do with the producer, ZEUS. Other pertinent data for Zeus includes the following: Direct Material unit $10.00 Management Salaries $1,750,000 Fixed Mfg. Costs $2.5M Commission% 5% of Sales Price/unit Direct Labor Hours/unit 2.0 Insurance $2.0M Direct wage $12.00/hour Rent $3.OM What are the total sales in number of Units? (2 points) Then Skip a line What are the total sales in $7 (2 points) Then Stip a line What is the variable cost/unit?use 2 decimal places (2 points) 35. Due to later market pressures the retail price drops and the impact on Zeus's price to its agent is revised. It will now be $60.00 Direct Material/unit $10.00 Management Salaries $175M Fixed Mig Costs $2.5M Commission 5% of Sales Price/unit Direct Labor Hours/unit 2.0 Insurance $20M Direct wage $12.00/hour Rent $3.0M What are the fixed costs in $ ? round to the nearest whole $ (2 points) Then Skip a line What is the contribution margin in $ ? use 2 decimal places (2 points) Then Skip a ine What are the total costs? round to the nearest whole $ (1 point) 36 Due to later market pressures the retail price drops and the impact on Zeus's price to its agent is revised. It will now be $60.00 Direct Material/unit $10.00 Management Salaries $1.75M Fixed Mfg. Costs $2.5M Commission% 5% of Sales Price/unit Direct Labor Hours/unit 2.0 Insurance $2.0M Direct wage $12.00/hour Rent $3.OM What is the total profit in $? round to the nearest whole $ (2 points) Then Skip a line What is the total profit in %? use percentage and 2 decimal places (2 point) Then Skip a line What is the breakeven point in units? round to the nearest whole number (4 points) 37. Gem Cakes sells designer cupcakes for $4.00 each. Each cupcake costs $1.00 for the ingredients and wrapper. Monthly expenses for the shop include the following: Rent is $1,000 Local advertising is $200 Utilities are $200 All wages are considered fixed at $4,000 per month Calculate the Fixed costs (2 points). 38. Gem Cakes sells designer cupcakes for $4.00 each. Each cupcake costs $1.00 for the ingredients and wrapper. Monthly expenses for the shop include the following: Rent is $1,000 Local advertising is $200 Utilities are $200 All wages are considered fixed at $4,000 per month How much would the mothly profit be if the business sells 6,000 cupcakes each month? (4 Points) 39. Each month, the owner of a carwash pays $2,500 in rent, $500 in utilities, $750 interest on the business loan, an insurance premium of $200, and $250 on advertising on local bus routes. A full-service carwash is priced at $10.50. Unit variable costs for the carwash are $7.50. Calculate the Fixed Costs (2 points) 40. Each month, the owner of a carwash pays $2,500 in rent, $500 in utilities, $750 interest on the business loan, an insurance premium of $200, and $250 on advertising on local bus routes. A full- service carwash is priced at $10.50. Unit variable costs for the carwash are $7.50. At what level of monthly revenue will the carwash break-even? (4 Points)
