Hey, you were a big help on the last question I asked. Was hoping you could help with this as well.

COUNTRYMANAGER Break-even Analysis Break-even analysis attempts to determine the volume of sales necessary for a manufacturer to cover costs, or to make revenue equal costs. It is helpful in setting prices, estimating profit or loss potentials, and determining the discretionary costs that should be incurred. The general formula for calculating break-even price is: Break-even Units = In CountryManager, total fixed costs can be broken into discretionary marketing expenditures (such as sales force and advertising budget) and fixed costs for plant and overhead. The selling price is the MSRP less the volume discount. Unit cost of goods sold and allowance expense plus shipping and tariffs make up the variable cost. This assignment will give you practice calculating break-even units, and using break-even analysis to check your pricing decisions and sales forecasts. 1. Given the data in the following table, calculate the selling price and variable cost for each SKU. MSRP Allowance % Channel Discount Unit Cost Shipping/Tariffs SKU #1 100 10% 22% 25 3 SKU #2 120 5% 30% 29 4 SKU #3 150 20% 26% 34 5 Unit Selling Price Unit Variable Cost 2. Given that the annual depreciation cost for the local plant is $50 million, use the data in the table below to allocate the fixed cost of the plant based on unit sales. Then calculate total fixed cost and break-even units. Amounts (except depreciation) are in local currency; you will need to convert the depreciation to the local currency. (Fill-in chart provided on next page.) Continued on Next Page . . . COUNTRYMANAGER (Cont'd.) Projected Units (M) Avg. Selling Price Avg. Variable Cost Advertising (M) Promotion (M) Sales Force (M) Administration (M) Fixed Costs (M) Exchange Rate/$ Market #1 120 75 44 250 70 90 250 175 39.6425 Market #2 220 5.00 2.60 100 20 45 22 10 2.4987 Market #3 40 24 18 30 15 25 100 30 15.3204 Allocated Plant (M) Total Fixed Cost (M) Break-even Units (M) 3. What other factors besides break-even should you consider before setting price