PAGE 231 Prod units to target please

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231 The CEO wants a profit of $800,000. Determine the sales needed to achieve this goal? The sales manager believes she can increase the sales of any of the three products by 20% by spending $25,000 in advertising on that product. Which product should she choose for the promotion? GET Cleveland Curs produces three models of golpes regular and gold Price and the three are as follows Regular Bilver Selling Price 3 20 3.30 Variable costs 12 Monthly fixed costs are $600.000 GO 160 Suppose the sales mix is Regular 50%, Silver 30% and Gold 20% What is the breakeven in sales dollars? Reg Silver Sale Price 20.00 Variable Cost 15.00 8.ee 15.00 Sales Mix 307 B4OO SH 50 mi Gold 2100 1200 Contribution margin Contribution margin 50 16.30 Contribution margin mix ratio Breakeven Price: $4,049,080 Cocoooo/14.821 How much must the total sales dollars be hake $300,000 per month? Dollar Sales Required= $6,073, 620 (6000000 300000)/14.82