i need a A+ please on god
MK317 Pricing Strategy Problems 1. Timex Elite watches retail for $120 and retailers receive a 50% mark-up on their cost. The manufacturer's (Timex's) variable costs are $30 per watch and overhead and other fixed costs amount to $18 million a. What is the cost of the watch to the retailer? b. What is the contribution per unit for Timex? What is the contribution margin? c. What is Timex's breakeven point for this product in units? d. How many Elite watches would Timex have to sell to make a profit of $3.6 million? What would total sales be in dollars? 2. Suppose you currently had 50% of the market share in an area where total demand was 10,000 units of a product in your industry. Your manufacturing costs are 50% of the current retail price. Pick a retail price point for one product. You predict that if you decrease your price by 10% you can now capture 60% of the market. Do you lower price? Why or why not? (Assume manufacturing costs stay the same.) 3. Acme Company currently sells a camera cell phone for $100 per unit. Current sales of Model Flash are 1 million units. Variable costs are $40 per unit. They are considering launching a new trendier camera phone, Model Zoom. They anticipate that first year sales will be 500,000 units; half of which will come from their current Model Flash. The initial unit price will be $150 and variable costs will be $100. Should Acme release the Model Zoom or not? 4. Acme manufacturing is considering investing $5 million in a new machine. Profit for the next four years is listed below. If the discount factor is 10% should they make the investment? Why or why not? Year Forecasted Profit >ON Discount Cash Flow ($5,000,000) Discount Factor 1.0 .909 .826 .751 .683 $ 500,000 1,000,000 2,000,000 3,000,000 3 4 Total