Gill Bates Math Problem Gill Bates is a famous computer programmer, and has just developed a state of the art gaming console, the HEXBOX 500. These boxes will be sold in retail stores at a price of $400.00 per unit. The retailers require a 20% markup on cost. Gill expects the manufacturing costs of his consoles to be $130.00 per unit. Packaging, distribution, and miscellaneous expenses are expected to be $60.00 per unit. To manufacture the consoles, Bates will need to use machinery and other assets that would cost $53 million every year. In an effort to increase consumer awareness, Bates has designed an advertising campaign (tagline: "Vex your Ex with the HEX") that will cost $14 million. He spent $17 million last year on the "Beware of the HEX" project, which involved a simulated test market experiment to study consumer acceptance of the console. He has decided that his salespeople will receive a commission of 10%. Salaries and other expenses are expected to total $11 million. The size of the gaming console market is expected to be 10m units this year. 

 

How do we find out the following numbers for the console manufacturer? 

1. Computation of manufacturer SP

2. Computation of fixed costs 

3.Computation of unit variable costs 

4.Computation of unit contribution 

5. Computation of break-even sales

6. Computation of market share