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5. What is the revenue at the break-even point? Answer 6. The manager wants to have total profit of $5,000 a month. How many product units must be sold to achieve this goal? Answer Now the manager considers two marketing promotion options. Option 1: Advertising on a local cable channel next month. The advertising cost is $2,000. 7. How many product units must be sold to cover the Total Cost (including the advertising cost)? Answer Option 2: Sales promotion next month (10% price discount on selling price). 8. How many product units must be sold to cover the Total Cost (including sales promotion cost)? Answer A manager of a local clothing retail store wants to make a sales and promotion plan for next month. In order to evaluate the effectiveness of the plan, the manager identifies all the costs and other relevant information and conducts Break-even analysis. Here are the identified costs and other related information. Monthly rent fees: $2,500 Wages for the hired employees (Monthly): $6,000 Utility fees (Monthly): $700 Other operation costs (Monthly): $1,000 Purchase price per unit: $78 (The manager purchases clothing from other retailers) Shipping and handling cost per unit: $12 (Assume there is no other cost) Paragraph the effectiveness of the plan, the manager identifies all the costs and other relevant information and conducts Break-even analysis. Here are the identified costs and other related information. Monthly rent fees: $2,500 Wages for the hired employees (Monthly): $6,000 Utility fees (Monthly): $700 Other operation costs (Monthly): 51,000 Purchase price per unit: $78_{The manager purchases clothing from other retailers) Shipping and handling cost per unit: $12 (Assume there is no other cost) 1. What is the total Fixed cost per month? Answer 9000 2. What is the Variable cost per unit? Answer 90 The manager wants to have 20% profit margin on selling price. What is the selling price per unit at the retail store? Answer 240 How many product units must be sold a month to break even? Answer 68 5. What is the revenue at the break-even point? Answer 409.09 WY wyr Name: A manager of a local clothing retail store wants to make a sales and promotion plan for next month. In order to evaluate the effectiveness of the plan, the manager identifies all the costs and other relevant information and conducts Break-even analysis. Here are the identified costs and other related information Monthly rent fees: $2,500 Wages for the hired employees (Monthly): $6,000 Utility fees (Monthly): 5700 Other operation costs (Monthly): $1,000 Purchase price per unit: 578_{The manager purchases clothing from other retailers) Shipping and handling cost per unit: $12 (Assume there is no other cost) 1. What is the total Fixed cost per month? Answer 9000 What is the Variable cost per unit? Answer 90 The manager wants to have 20% profit margin on selling price. What is the selling price per unit at the retail store? Answer: 240 4. How many product units must be sold a month to break even? 4. How many product units must be sold a month to break even? Answer 68 5. What is the revenue at the break-even point? Answer 409.09 The manager wants to have total profit of $5,000 a month, How many product units must be sold to achieve this goal? Answer Now the manager considers two marketing promotion options. Option 1: Advertising on a local cable channel next month. The advertising cost is $2,000. 7. How many product units must be sold to cover the Total Cost (including the advertising cost)? Answer Option 2: Sales promotion next month (10% price discount on selling price)... 8. How many product units must be sold to cover the Total Cost (including sales promotion cost)
