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$70 per unit a. Retail selling price b. All margins the same as before c. Direct factory labor d. Raw materials e. Additional factory and
$70 per unit a. Retail selling price b. All margins the same as before c. Direct factory labor d. Raw materials e. Additional factory and admin. overheads f. Salesperson's commissions: g. Incremental sales force travel cost h. Advertising for Super Vesuvius i. New equipment needed j. Research and development spent up to now k. Research and development to be spent this year to commercialize the product $3 per unit $6 per unit $3.5 per unit (if unit volume = 50,000) the same percent as before $60,000 $650,000 $950,000 (to be depreciated over 10 years) $250,000 $600,000 (to be amortized over 5 years) Questions 1. What is the contribution per unit of the Super-Vesuvius brand? 2. What is the break-even volume in units and in dollars? 3. What is the sales volume in units necessary for Super Vesuvius to yield in the first year, a 24 percent return on the equipment to be invested in the project? $70 per unit a. Retail selling price b. All margins the same as before c. Direct factory labor d. Raw materials e. Additional factory and admin. overheads f. Salesperson's commissions: g. Incremental sales force travel cost h. Advertising for Super Vesuvius i. New equipment needed j. Research and development spent up to now k. Research and development to be spent this year to commercialize the product $3 per unit $6 per unit $3.5 per unit (if unit volume = 50,000) the same percent as before $60,000 $650,000 $950,000 (to be depreciated over 10 years) $250,000 $600,000 (to be amortized over 5 years) Questions 1. What is the contribution per unit of the Super-Vesuvius brand? 2. What is the break-even volume in units and in dollars? 3. What is the sales volume in units necessary for Super Vesuvius to yield in the first year, a 24 percent return on the equipment to be invested in the project
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