Question
Hi I need help with the following question for my marketing class using BREAK-EVEN ANALYSIS: - Executives of Monaffiche, a firm producing high-quality reproductions of
Hi I need help with the following question for my marketing class using BREAK-EVEN ANALYSIS:
- Executives of Monaffiche, a firm producing high-quality reproductions of artworks, produced their latest vintage-era art poster by famous artist Henri Wales, titled Mood Bloo. The following costs pertain to the new poster art:
Poster (materials & labor): $9.15/poster
Artists royalties: $0.85/poster
Framing (materials & labor) $11.00/poster
Advertising and promotion $175,000
Monaffiches overhead $650,000
Selling price to distributors $40.00
Calculate the following:
1. Calculate the contribution per poster
2. Calculate break-even volume in poster units AND dollars.
3. Calculate net profit if 100,000 posters are sold
Additional question. Monaffiches informal research efforts estimate the market for this particular poster to be about 50,000 units. Will this poster be profitable? Will it return their minimum $500,000 required profit?
Please attach calculations in an excel spreadsheet and answer as many as you can, I will follow your formulas so I can do this myself in the future. Thank you so much!!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started