Answer the following four questions in the space provided below. CLEARLY label your answers.

1. If there is a problem with your marketing performance, identify the specific managerial item(s) in the income statement that require resolution. (Identify the category and give the percentage of sales. 2 Points)

2. Calculate your Breakeven Units Figure? (Show your work and final answer. 2 Points)

3. Calculate your Breakeven Sales Figure if Depreciation is increased by $5,000. (Show your work and final answer. 2 Points)

4. If the firms Total Assets are $250,000 and Equity is $50,000, set up the complete Strategic Profit Margin Model including its financial ratios. (show your complete ratios and final numbers in the SPM model. 4 points)

MARKETING SCENARIO "B" (4 questions, ten points in total) You new boss has just given you the following information Net Sales (Unit Price - S10.00) 100,000 Less: Inx (B) 20,000 GrosS Less: Discs. Purchases Freight-In 35,000 5,000 60,000 25.000 Total Goods Available Less: Inx (E) Total Cost of Goods Sold 35.000 65,000 22.000 43,000 Gross Margin 20,000 2,000 Less Sales Commissions Customer Deliveries Contribution Margin Depreciation Advertising Salaries 5,000 20,000 10,000 Less: 35.000 8,000 Net Profit (BT) Since your company was new this past year, your boss had you check with the trade association to see what that group reported about business performance. The group reported: Net Sales (100%), Inx(B) 20%); Gross Purchases (40%); Discs (10%); Purchases (30%); Freight-In (596); Total Goods Available (55%); Inv(E) (25%); Cost of Goods Sold (30%); Gross Margin (70%) Variable Expenses (22%); Sales Commissions (2006): Contribution Margin (48%); Fixed Expenses (35%. Advertising (20%); Salaries (10%) and Net Profit (BT) (13%)