Question 5: Maybelline recently introduced a high-end lip balm called Baby Lips. The national target market is female, age 24 34, income $45,000 and higher. The current price is $4.60. Fixed costs are estimated at $8,775,000. Variable costs are currently $2.35. Maybelline believes that it can reduce cost of goods sold, due to favorable contract negotiations with ingredient suppliers for shea butter, centella and anti-oxidants. As a result, variable costs are predicted to decline by $0.30. Maybelline is debating whether to pass the cost savings on to the consumer or to maintain the current price. What would be the change in Maybelline's breakeven volume (in tubes, +/-) if the company maintains the current price? Round your answer to the nearest whole number.

Question 6: Maybelline is contemplating the introduction of a high-end lip balm, tentatively called Baby Lips. The national target market would be female, age 24 34, income $45,000 and higher. The anticipated price would be $4.35. Fixed costs are estimated at $7,250,000. Variable costs will be $2.55. The market for this product category is estimated to be 22,500,000 tubes. What market share would Maybelline need to capture in order for Baby Lips to breakeven? Report your answer as a percent, rounded to one decimal place.

Question 7: The CellPhoneShop sells protective covers for all the popular smartphone brands. The company has determined that it needs a 45% markup on retail price in order to be profitable. It believes that this markup will satisfy the company's profit objectives and will also be competitive with other suppliers of cellular accessories. The company recently negotiated an order of covers for $13.40 /cover. Given the company's pricing guideline, what will be the selling price of these covers? Report your answer in dollars and cents, rounded to two decimal places.

Question 10: A buyer for BestBuy is negotiating with a manufacturer to purchase an order of edge-lit 58 inch 3D LED televisions. She negotiates a price of $1,200. BestBuy marks up this category of television by 24% of selling price. BestBuy has determined that the price point for this TV will be $1,650. Based on the negotiated price, BestBuy's required markup and the customer price point, by how much will BestBuy be exceeding (+) or falling short (-) of it's desired markup? Round your answer to the nearest dollar. In answering this question, calculate the selling price that would represent a 24% markup on that selling price, given the negotiated purchase price. Then compare that price to BestBuy's price point.