NEED QUESTIONS 1-8

cyber Novelties Cyber Novelties is a direct sells company that sells small gadgets over the Internet following annual sales estimate: eting research staff at Cleveland based Cyber Novelties has developed the Prepound Seiling Price Sales Estimate the The demand is insensitive below 58. The new product has a annual fixed cost of $60,000 and a variable cost of $7 per unit. 1. Referring to Cyber Novelties above, calculate the elasticity between $10 and $15. 2. What is the breakeven quantity at a price of $107 3. Referring to Cyber Novelties above, which of the proposed selling prices would generate the largest profit? 4. After conducting additional marketing research, Cyber Novelties estimates that by increasing the spending $75,000 annually for advertising and $0.05 per unit allocation for extra promotion on the web will produce the following increases in estimated sales: 143,000 units at an $8 unit selling price, 48,000 units at $10, 18,000 units at $15, 12,000 units at $20, and 8,000 units at $24. Indicate the feasible range of prices if Cyber Novelties implements the advertising and promotional program. 5. At any income above $25,000 Cyber Novelties has to pay taxes at a rate of 33%, calculate Cyber Novelties net profits after tax (rpat) and calculate is return on investment (ROI) with: (1) a $60,000 investment, and (2) with the addition of the $75,000 investment 6. Indicate the feasible price or prices if the advertisement and promotional proposal is not implemented but management insists on at least a $25,000 target return 7. This project only has an initial budget of $60,000 and management wishes to initially gain maximum market share while trying to maintain respectable revenues; what price should Cyber Novelties initially charge? And, what quantity should they initially produce? After operating for a while, management is willing to provide additional funding; what do you think the long-run pricing and production strategy should be? 8. Cyber Novelties plan to sell an additional 15,000 bits through a retail channel. It will cost Cyber Novelties' 5000 to promote to B2B customers, plus they will have to pay a distributor a 10% commission. Given that the pricing will be consistent with the price you found that maximizes profits with advertising, and using a functional discount of 25/20, (1) how much are the retailers' mark-up (2) How much is the wholesaler's mark-up? (3) What does Cyber Novelties pay the distributor. And. (3) how much is Cyber Novelties' profit? (4) is this worth doing