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Please Answer A,B and C Thank You! (: O X Comments AutoSave on 2 08 SCENARIO C- Contribution Margin, Break-Even Analysis and Market Share -
Please Answer A,B and C
Thank You! (:
O X Comments AutoSave on 2 08 SCENARIO C- Contribution Margin, Break-Even Analysis and Market Share - Compatibility.... Giselle Acosta GA - File Home Insert Draw Design Layout References Mailings Review View Help Search Share AX Cut Calitri 11 A A Aa Aa E 3 211 Find - . - | Replace BIU XX ALA 1 Normal 1 No Spac... Heading 1 Heading 2 Title Dictate - Format Painter Select- Clipboard Font Paragraph Styles Editing Voice Paste Copy SCENARIO C: Contribution Margin, Break-Even Analysis and Market Share IDEA CONCEPTS, INC. markets video equipment and film through a variety of retail outlets. Presently, IDEA is faced with a decision as to whether it should obtain the distribution to an unreleased file titled, "Border Cultures and Life." If this film is distributed by IDEA directly to large retailers, IDEA's investment in the project would be $150,000. IDEA estimates the total market for the film to be 100,000 units. Other data available are as follows: Cost of distribution rights for the film $125,000 Label Design $ 5,000 Package Design $ 10,000 Advertising $ 35,000 Reproduction of coples (per 1000) $ 4,000 Manufacture of Labels and Packaging (per 1000) $ 500 Royalties (per 1000) $ 500 Idea's suggested retail price is $20.00 per unit. The retailer's margin is forty percent. a. What is Idea's contribution $ per unit? b. What is its Breakeven point in $ and units? c. What share of the market would the film have to achieve to earn a 20% return on Idea's investment in the first year? Page 1 of 1 180 words * Display Settings EE E ES- O Type here to search N a + 100% 2:22 AM 2/12/20206 TWCStep by Step Solution
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