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Acme Turntables reported the following information for last year: Unit price: $499 Unit cost: $174 Fixed costs: $1,000,000 overhead + $500,000 marketing expenses = $1,500,000
Acme Turntables reported the following information for last year: Unit price: $499 Unit cost: $174 Fixed costs: $1,000,000 overhead + $500,000 marketing expenses = $1,500,000 total Units sold: 9430 What is their Total Profit? What is Acme's Breakeven Volume in units? What is Acme's Breakeven Volume in revenues? If Acme decided to add $35,000 to their promotional budget, given the same price and unit cost, how many units would they have to sell to break even? Assume that Acme has set a target profit of $1,000,000. What is their Target Profit Breakeven Volume? (assume that they did NOT end up adding the $35,000 to their promotional budget) If Acme raised their price to $525 but kept their target profit the same, what would their Target Profit Breakeven be? During the year, Acme sold turntables to 5501 new customers. Assume that 25% of their marketing budget was spent on new customer acquisition. What was their Customer Acquisition Cost (CAC)
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