Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please provide a brief explain on how did you do the calculations. Thanks! Use the following data to answer the questions about Manufacturing Firm GFE:

Please provide a brief explain on how did you do the calculations. Thanks!

Use the following data to answer the questions about Manufacturing Firm GFE:

Retailers' Sales Revenue from GFE's widgets

$3,000,000

Manufacturer (GFE's) Gross Sales Revenue

$1,800,000

Trade Promotion (10% off)

$180,000

GFE's Net Sales Revenue

$1,620,000

GFE's Cost of Goods Sold (all Variable)

$540,000

GFE's Advertising Expenditure

$50,000

GFE's Sales & Marketing Administration Expenditure

$150,000

GFE's Consumer Promotion Expenditure

$70,000

GFE's Corporate Executive Salary

$70,000

GFE's Research & Development costs

$20,000

GFE's Net Profit before taxes

$720,000

Total Widget Industry Sales at retail

$30,000,000

Manufacturer's (GFE's) Suggested Retail Price/unit

$10.00

GFE's List Price to Retailer

$6.00

Number of Widgets Sold by GFE to retailers

300,000

GFE's ($) Market share

10%

PART 1: GFE is a manufacturer of widgets. They sell their widgets directly to multiple retailers who sell them to end-users (people like you and me).

  1. What is the total Marketing and Sales Expense for GFE?
  2. What is the current Net Marketing Contribution (NMC) for GFE?
  3. What is the current Gross Profit Margin for GFE?
  4. What is the current Marketing Return on Sales (ROS) for GFE?
  5. What is the current Marketing Return on Investment (ROI) for GFE?
  6. What is the Retail Margin?
  7. What is the Retail markup percentage?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Financial Management

Authors: Geert Bekaert, Robert J. Hodrick

2nd edition

013299755X, 132162768, 9780132997553, 978-0132162760

More Books

Students also viewed these Finance questions