Metropolitan Manufacturing Co (MMC) is reviewing plans for their table fan line. The retail price (price to end users) will be $30. Retailers will receive a markup of 30% on the price paid by the consumer. Wholesalers will receive a markup of 11.11% on manufacturer selling price. Cost of production will be about $10 per fan. Packaging and shipping will add approximately another $2.00 per fan. MMC will use agents at 6% commission to reach wholesalers. Annual manufacturing costs total about $50,000. Annual advertising costs are about $30,000. The total annual regional market for fans is about 800,000 units. Table fans account for about 20% of this. MMC expects a 15% share of the table fan market. However this might not happen! There is a chance that the MMC market share will only be 5%! Q8. MMC plans doubling advertising and rent more storage at $20,000. Now, what fan and dollar sales are necessary for the $100,000 profit objective? Apart from added advertising and warehouse space, the product will be modified, costing $1 per unit. Now, how many fans need to be sold by MMC to I maintain the $100,000 profit objective? Q10. Calculate MMC's Break-even %Market Share for Q9. Metropolitan Manufacturing Co (MMC) is reviewing plans for their table fan line. The retail price (price to end users) will be $30. Retailers will receive a markup of 30% on the price paid by the consumer. Wholesalers will receive a markup of 11.11% on manufacturer selling price. Cost of production will be about $10 per fan. Packaging and shipping will add approximately another $2.00 per fan. MMC will use agents at 6% commission to reach wholesalers. Annual manufacturing costs total about $50,000. Annual advertising costs are about $30,000. The total annual regional market for fans is about 800,000 units. Table fans account for about 20% of this. MMC expects a 15% share of the table fan market. However this might not happen! There is a chance that the MMC market share will only be 5%! Q8. MMC plans doubling advertising and rent more storage at $20,000. Now, what fan and dollar sales are necessary for the $100,000 profit objective? Apart from added advertising and warehouse space, the product will be modified, costing $1 per unit. Now, how many fans need to be sold by MMC to I maintain the $100,000 profit objective? Q10. Calculate MMC's Break-even %Market Share for Q9