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* Norfitel Corp. is offering a new model of its smartphone for $300 at retail price In their marketing channel, wholesalers run the bulk logistics
* Norfitel Corp. is offering a new model of its smartphone for $300 at retail price In their marketing channel, wholesalers run the bulk logistics downstream while retailers conduct the point of sales & merchandising functions Retailers command a 25% margin: the Wholesalers charge 15% margin Norfitel has a fixed cost budget which includes the following: $5 Million for sales & distribution operations, $3 Million for advertising & promotions via television/internet/social-media venues, $2 Million for general & administrative expenditures toward managing this product line. Per Unit, their variable cost structure as part of this assemble-to-order operation comprises of the following activities: $40 for purchase procurement of the electronic components/circuitries/sub-ussemblies, $25 for direct labor & production S10 for finishing quality assurance/packaging-&-Inbeling It forecasts selling 1 Million units in the first year. The development team has also been granted an appropriation of $3.25 Million toward strategic purposes of market research technical design, product engineering, & telecommunication systems integration configurations applied for this model and their future competitive/innovative offerings. (0) - What is Norfitel's Unit Selling Price for this model? (b). - What is the break-even volume for this model in units and in dollars? Explain in business marketing language what this break-even volume means. - What metric would you compare this break-even volume with to check if it's feasible? (c). - Compute the estimated Profit (in %) based on the analyses thus far, considering that their goal is to distribute &sell the forecasted 1 Million units. (d). NOW. the financial allocator is requiring this model to also achieve a 10% ROI (return on investment) to justify its fair utilization of the $3.25 Million strategic advancement budget. Thus, what does the relevant fixed costs NOW become? - Compute the necessary sales volume in units required to achieve this 10% ROI. To this effect, are you using the method of expensing' or 'capitalizing' for recovery of this relevant fixed costs? (e.- If Norfitel targets a profit of S50 Million in this line, what should be its sales figures in units? 0. Norfitel plans to start offering a $10 promotion on each unit sold after break-even is achieved. - If the target is to still eam a profit of $50 Million in this line (factoring in the $10 promotion after break even), what should be its revised sales figures in units
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