MKT210-Market Measurement Exercise #3: Margins Use the following product information to answer the questions below. Contribution Margin Margin per unit($) per unit($) per unit (%) Break-Even (#units) Break-Even - ($) ( PRODUCT a. Honey Bunches of Oats Cereal b. Tide Laundry Detergent (100 oz) c. Tropicana Orange Juice d. Rutter's Milk (gallon, whole) e. Lay's Potato Chips f. Wonder Bread (loaf) g. Excedrin Tension Headache h. Friskies Dry Cat Food (13 lb) Variable Costs Cost Sales Price Total Fixed Costs per unit ($) per unit ($) per unit ($) 50,000 1.75 2.79 3.59 200,000 6.50 9.50 11.45 45,000 2.25 3.25 4.75 300,000 3.60 3.89 4.90 175,000 1.95 2.59 3.99 85,000 0.95 1.79 3.05 225,000 4.75 6.39 8.89 135,000 7.75 9.29 13.39 1. Explain the difference between A) sales price and unit cost and B) fixed and variable costs? 2. Calculate the contribution per unit for each product. Write down your formula here. ---------------------- -------------- 3. Calculate the margin - % and $- for each product. Write down each formula here. 4. What is the break-even point (in units) for each product? Write down your formula here. 5. What is the break-even point (in dollars) for each unit? Write down your formula here