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concerned with E-I. must show work question e A-I question 3* A-I through wholesalers who will sell to rele Io 20 percent on sales to
concerned with E-I. must show work
question e A-I
question 3* A-I
through wholesalers who will sell to rele Io 20 percent on sales to retailers, and retailers earn a margin of 40 percent on the ll p policy requires products to earn a 50 percent margin on the price to wholesalers. (8 points) a) What will be the cost per case to retailers? (1.5 pts) b) What will be the cost per case to wholesalers? (1.5 pts c) If 100,000 cases of the product are sold, what will be Modern Food's: i) total sales revenue? (2.5 pts) ii) total contribution? (2.5 pts) Do Problem # 1 Studio Recordings, Inc.) fromthe end-of-chapter problems for Chapter 2 (10 points distributed as follows: a 2 pts, b4 pts, c-2 pts, d-2 pts) 2) The following data pertain to costs and revenue estimates for a proposed new product (Extensia) by to be manufactured b MI Electronics, Inc. (NOTE: The product is sold only through retailers. No wholesalers are involved) 3) Market size& revenue estimates Costs: S10.50 Total market size (in units) Ingredients (per unit) 40 Total market size (in retail dollars)$280,000.000 S3.50 Forecasted sales of Extensia (in units)250,000 Selling price to retailers (i.e. revenue received by MI Electronics, Inc.) Manufacturing (per unit) Delivery (per unit) $4.00 $80.00 Miscellaneous (per unit) Fixed manufacturing overheads allocated to Extensia $6.60 $1,500,000 General office overheads allocated to Extensia S500,000 Advertising. & promotion expenses for Extensia S2,000,000 mpute the following: (Total 12 points) a) Average retail price of Extensia (I p)14o b) Retailers' dollar margin per unit (Ipt) c) Retailers' margin percent (%) (1pt) d) Contribution per unit earned by MI Electronics (I pt) e) MI Electronics' contribution margin (I pt) f MI Electronics' breakeven volume in units (1.5 pts) g) MI Electronics' breakeven volume in dollars (I.5 pts) h) MI Electronics' total contribution at the forecasted level of sales (2 pts) i) MI Electronics' breakeven share of market, i.e. its market share at the breakeven point (2 pts) Step by Step Solution
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