Exercise 3 APPLICATION Marketing Scenario B: You are a supplier of a 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 $ 8.00 Depreciation $25,000 Royalties per unit $ 2.00 Plant and Equipment Rent $50,000 Total Units Sold 10,000 Your firms Total Assets are $400,000 with total equity of $75,000. Using the Contribution Margin PRICE PER UNIT METHOD, make the calculations indicated below (all formulae and calculations must be shown) (Hint: In this exercise you dont 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 handout Total Sales vs. Price per Unit Method).

b. Calculate your firms Breakeven Point in Dollar Sales and in Units Sold. Convert your Price per Unit Performance Assessment to an Income Statement based on Total Sales.

c. Prepare your 2017 Income Statement (based on total Sales)

d. Assume you want to increase your advertising expenditures by four percent of Total Sales for the coming year. If price and all other operating expenses remain unchanged, what is your new Breakeven Sales in dollars figure?

e. Assume that the total industrys (2017) sales figure for your product line is $1,200,000 and your firms 2016 sales in units were 9,600, what is the firms market share % of the industrys total sales and your firms 2017 sales growth rate percentage?

Need help with C, D, & E.