Please use the information for all the margins from question number 1.
2. One of the first decisions you have to make as the brand manager for Flexo is whether or not to add a new line of razors, the "Super Flexo" line. This line would be marketed in addition to the original Flexo line. Your brand assistant has provided you with the following facts: Retail selling price b. All margins the same as before Direct factory labor d. Raw materials Additional factory and administrative overheads a. $40 per unit C. $ 3 per unit $2 per unit $2 per unit (at a 50,000 unit volume level) e. f. Salespersons' commissions the same percent as before g.Incremental sales force travel cost h. Advertising for Super Flexo i. New equipment needed $50,000 $600,000 $500,000 (to be depreciated over 10 years $200,000 i. Research and development spent up to now k. Research and development to be spent this year to commercialize the product $500,000 (to be amortized over five years) Questions What is the contribution per unit for the Super Flexo brand? What is the break-even volume in units and in dollars? What is the sales volume in units necessary for Super Flexo to yield, in the first year, a 20 percent return on the equipment to be invested in the project? 1. 2. 3. 3. The $40 per unit selling price for Super Flexo seems thought you might lower the price to $37 per unit and raise retail margin to 25 percent high to you. You Question What is the break-even volume in units? 1. You have just been appointed the product manager for the "Flexo" brand of electric razors in a large consumer products company. As part of your new job, you want to develop your product. Your brand assistant has provided you with the following facts: an understanding of the financial situation for $30 per unit 20% 20% a. Retail selling price b. Retailer's margin Jobber's margin d. Wholesaler's* margin Direct factory labor f.Raw materials g. All factory and administrative overheads C. 15% $2 per unit $1 per unit $1 per unit (at a 100,000 unit volume level) 10% of manufacturer's selling price $200,000 $500,000 1 million units 210,000 units e. Salespersons' commissions h. . Sales force travel costs j Advertising k. Total market for razors .Current yearly sales of Flexo An agent who sells to the jobbers, who in turn sell to the retailers 2. One of the first decisions you have to make as the brand manager for Flexo is whether or not to add a new line of razors, the "Super Flexo" line. This line would be marketed in addition to the original Flexo line. Your brand assistant has provided you with the following facts: Retail selling price b. All margins the same as before Direct factory labor d. Raw materials Additional factory and administrative overheads a. $40 per unit C. $ 3 per unit $2 per unit $2 per unit (at a 50,000 unit volume level) e. f. Salespersons' commissions the same percent as before g.Incremental sales force travel cost h. Advertising for Super Flexo i. New equipment needed $50,000 $600,000 $500,000 (to be depreciated over 10 years $200,000 i. Research and development spent up to now k. Research and development to be spent this year to commercialize the product $500,000 (to be amortized over five years) Questions What is the contribution per unit for the Super Flexo brand? What is the break-even volume in units and in dollars? What is the sales volume in units necessary for Super Flexo to yield, in the first year, a 20 percent return on the equipment to be invested in the project? 1. 2. 3. 3. The $40 per unit selling price for Super Flexo seems thought you might lower the price to $37 per unit and raise retail margin to 25 percent high to you. You Question What is the break-even volume in units? 1. You have just been appointed the product manager for the "Flexo" brand of electric razors in a large consumer products company. As part of your new job, you want to develop your product. Your brand assistant has provided you with the following facts: an understanding of the financial situation for $30 per unit 20% 20% a. Retail selling price b. Retailer's margin Jobber's margin d. Wholesaler's* margin Direct factory labor f.Raw materials g. All factory and administrative overheads C. 15% $2 per unit $1 per unit $1 per unit (at a 100,000 unit volume level) 10% of manufacturer's selling price $200,000 $500,000 1 million units 210,000 units e. Salespersons' commissions h. . Sales force travel costs j Advertising k. Total market for razors .Current yearly sales of Flexo An agent who sells to the jobbers, who in turn sell to the retailers
