Exercise 3 (25 points) Marketing Scenario for a retailer: You sell a particular product line. Given the information below, answer each of the questions asked. You are given the following information (2017 Annual): Price per Unit $25.00 Advertising $15,000 Packaging per unit $ 5.00 Direct Labor per unit $ 800 Depreciation $25,000 Royalties per unit $ 2.00 Plant and Equipment Rent $50,000 Total Units Sold 10,000 Your firm's Total Assets are $400,000 with total equilty of $75,000 To answer the following questions, please use the contribution Margin PRICE PER UNIT METHOD. (Hint: In this exercise you don't need COGS: you are using variable cost per unit from the Price per unit method) a. Set up your Price Per Unit Performance template (See slide showing the - Total Sales vs. Price per Unit Method) and calculate CM per unit. Show also show your fixed expenses. Price per unit 45.00 38/10,000 cost of Czoods Sold Sales Comunission per unit labeling /Marketing per unit Customer Dellvieries per unit Contribution Margin $ Advertising expense 515,000 Depreciation $50,000 b. Calculate your firm's Breakeven Point in Dollar Sales and Break even point in Units Sold. 4