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Campbell s is preparing for the launch of a new product. They have decided to offer a vegan, gluten - free version of their popular

Campbells is preparing for the launch of a new product. They have decided to offer a vegan, gluten-free version of their popular SpaghettiOs product to capture more sales in the marketplace. By using their strong brand name, they believe they can increase their market share substantially. The costs allocated to this new product are as follows: The advertising budget is $500,000 The cans cost $0.02 each The contents and packaging cost $0.06 per unit The salary of the new product team totals $60,000 The direct labor is allocated at $0.03 per unit A slotting allowance of $20,000 The shipping and insurance are $0.02 per unit The factory remodel to ensure the new product is vegan and gluten-free totals $30,000 Campbells plans to use its existing distribution channel, which involves both wholesalers and retailers. The existing Margin on Selling Price is 10% for wholesalers and 15% for retailers. Campbells has decided to sell the soup for $0.35 to its intermediaries
What are the fixed costs and variable costs of this new product? List them and provide the final amount for each. Assuming that 100 units are sold, calculate the total costs.

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