FINANCIAL ASSIGNMENT Marketing 453 Winter 2017 Reading on Moodie You have just been appointed the product manager of the brand ofoom to has refrigerators large consumer products company. As part your new job, you want develop an understanding the financial situation for your product. Your brand assistant of provided you following facts: per unit $90 Retail selling price P Ga. b. Retailer's margin 30% margin d. Wholesaler's margin S2.5 per unit. e. Direct factory labor S2 per unit 100,000) g. Raw materials overbeads C $3.3 unit (if unit volume price per All factory and administrative 10% of manufacturer's selling h. Salesperson's commissions JC i. Sales force travel costs EC $690,000 j. Advertising FC 1 million units k. Total market for compact refrigerators 220,000 units 1. Current yearly sales of "Freezo" 1. What is the contribution per unit for the Freezo- brandm seiting price 2. What is the in units and in dollars? even? 3. What market share does the Freezo brand need to break 4. What is the current total contribution? 5. What is the current before-tax profit of the Freezo brand? tax profit of exactly s2.4 6. What market share must Freezo obtain to contribute a before million? One of the first decisions you have to make as the brand manager for Freezo is whether or not to add a new line of compact refrigerators, the "Super-Freezo line. The line would be the marketed in addition to the original Freezo line. Your brand assistant has provided you with following facts. The manufacturer sells to the wholesaler. The wholesaler sells to the jobber who, in turn, sells to the retailer. 2 You are a part of the company that manufactures Freezo. Hence, you have to view this problem from the perspective of the manufacturer ofthe product (and not from that of the middlemen)