Financial Exercises Questions: 1. In 2005, Datum, Inc. had total sales of $245,435,000 and their costs of good sold were $68,721,800. Calculate Datums gross margin. 2. Satellite Imaging (SD) is considering launching a new satellite receiver that will be sold through major electronic retailers in the US. The initial investment that SD will need to invest if they develop the Xgen1 is $7.8 million. Research suggests that high-end electronic consumers are willing to pay $695 for the HD receiver/DVD recorder. The mark-up for retailers is 28% on selling price, while wholesalers earn a margin of 9%. Other data concerning the Xgen1 are as follows.

Expense Cost Advertising/promotion $875,000 Overhead $533,000 Packaging $4.865/unit Components $197.56/unit Assembly of components $92.56/unit Supplemental goods (manual, cables, etc) $3.292/unit

Calculate the following: a. Retailer cost b. Wholesaler cost c. Contribution per unit d. Contribution margin e. Break-even unit volume f. Necessary unit volume to achieve a $500,000 profit