Question
A shampoo manufacturer works with the following info: plastic containers @ 15 cents per unit; caps @ 5 cents per unit; shampoo liquid @ 10
A shampoo manufacturer works with the following info: plastic containers @ 15 cents per unit; caps @ 5 cents per unit; shampoo liquid @ 10 cents per unit; direct labor @ 5 cents per unit; Selling Price @ $1.00; advertising budget @ $50,000; managerial & staff salaries @ $300,000; salesperson commissions @ 10% of selling price; factory overhead @ $200,000. The total market size is 20,000,000 units. A) What is the break-even market share in this situation? (5%) B) What is the companys profit if 3,000,000 units of the shampoo are sold? ($1,100,000)
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