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Principles of Marketing FloTru Pricing Math FloTru is a consumer product for kitchen sinks. The selling price by manufacturer of FloTru is set at $1.00
Principles of Marketing FloTru Pricing Math FloTru is a consumer product for kitchen sinks. The selling price by manufacturer of FloTru is set at $1.00 per unit. Variable manufacturing costs for FloTru are $.1 (10 cents) per unit. Fixed manufacturing costs are $900,000. The advertising budget for FloTru is $600,000. The FloTru product manager's salary and other expenses total $45,000. Salespeople are paid by a 10% commission based on manufacturer's selling price. Shipping costs, breakage, insurance, etc. are $.03 per unit. 1a. What is the unit contribution for FloTru? 1 1b. What is FloTru's break-even point? 1c. What is the net profit if 6 million units are sold? 1d. How many units need to be sold to achieve a profit of $5,000,000
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