Questions Manel Inc. will introduce its new natural air freshener, Bayer, next year. It is estimated...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Questions Manel Inc. will introduce its new natural air freshener, Bayer, next year. It is estimated that Bayer will capture 10% percent of the 30 million unit market. Bayer's retail price is $9.50. Manufacturing costs for Bayer include $0.75 for material and $0.25 for labor per unit. overhead costs are expected to be $1,390,000 per year. Brand manager's salary and expenses total $114,000. Salespeople are paid entirely by a 11.5 percent commission. Shipping costs, breakage, insurance, and so forth are $0.19 per unit. The advertising budget for Bayer is $2,960,000. While wholesalers take a 11 percent markup on price, retailers will receive a margin of 27 percent. Please answer the following questions: 1 At what price will the company be selling its product Bayer? 2 What is the contribution per unit for Bayer? 3 What is the break-even unit volume in the first year? 4 What is the first-year break-even share of market? 5 What is the markup% on price for Bayer? 6 What is the markup% on cost for the wholesaler? Retail Price Wholesaler Retailer's manucfactured $9.50 11% Questions Manel Inc. will introduce its new natural air freshener, Bayer, next year. It is estimated that Bayer will capture 10% percent of the 30 million unit market. Bayer's retail price is $9.50. Manufacturing costs for Bayer include $0.75 for material and $0.25 for labor per unit. overhead costs are expected to be $1,390,000 per year. Brand manager's salary and expenses total $114,000. Salespeople are paid entirely by a 11.5 percent commission. Shipping costs, breakage, insurance, and so forth are $0.19 per unit. The advertising budget for Bayer is $2,960,000. While wholesalers take a 11 percent markup on price, retailers will receive a margin of 27 percent. Please answer the following questions: 1 At what price will the company be selling its product Bayer? 2 What is the contribution per unit for Bayer? 3 What is the break-even unit volume in the first year? 4 What is the first-year break-even share of market? 5 What is the markup% on price for Bayer? 6 What is the markup% on cost for the wholesaler? Retail Price Wholesaler Retailer's manucfactured $9.50 11%
Expert Answer:
Answer rating: 100% (QA)
To answer the questions lets go step by step 1 At what price will the company be selling its product Bayer The company will be selling its product Bay... View the full answer
Related Book For
Practical Management Science
ISBN: 978-1305250901
5th edition
Authors: Wayne L. Winston, Christian Albright
Posted Date:
Students also viewed these general management questions
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Can someone please summarize the case study below: if you know about the case IKEA Looks to Further Penetrate the U.S. Market 10 CASE Synopsis: IKEA is known around the world for its stylish,...
-
Given a risk-adjusted discount rate of 14%, calculate the discounted payback period for the following cash flow of a project. If the maximum target discounted payback period is 3 years, comment on...
-
Sandra Hills has opened Macchiato and More, a wholesale grocery and coffee company. The following transactions occurred in June: 201X June 1 Sold grocery merchandise to Fran Co. on account, $700,...
-
What are some of the major advantages of franchising? Cite and explain three.
-
Dombrad Mining Company purchased land containing an estimated 10 million tons of ore for a cost of $4,400,000. The land without the ore is estimated to be worth $800,000. The company expects that all...
-
The following information pertains to Torasic Companys budgeted income statement for the month of June 2011: Sales (1,200 units at $250) $300,000 Variable cost 150,000 Contribution margin $150,000...
-
Blossom Company earns 1 2 % on an investment that will return $ 4 6 1 , 0 0 0 8 years from now. Click here to view the factor table. What is the amount Blossom should invest now to earn this rate of...
-
During the current year, Yost Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following: The machines...
-
b. You are considering buying an small apartment building as an investment. Identify three methods discussed in chapter 16 that you could use to evaluate whether or not to make this investment. As...
-
Consider the process qa W+W_ a) Draw four different leading-order fully labelled Feynman diagrams for the process.
-
Riverside Incorporated makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold Total costs Variable costs 700 500 Fixed costs $ 85,000 238,000 Total...
-
Four charges are located at the four corners of a square with charge values and side length as shown. Let positive x be towards the right of the page, and let positive y be towards the top of the...
-
Evaluate: 2log(10)
-
Now that we've awakened the research mindset in Unit 1, in Unit 2, we'll kick off the first phase of 'real' college research with a little reflective research - by looking first into the self and...
-
Determining Cost of Land On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $32,000 in cash and giving a short-term note for $276,000. Legal fees paid were $2,175,...
-
A local politician is concerned that a program for the homeless in her city is discriminating against blacks and other minorities. The following data were taken from a random sample of black and...
-
Software EG, a retail company, orders two kinds of software from Tele-Hard Software. Annually, Software EG sells 800 units of product 1 and 400 units of product 2. The unit purchasing cost is $30 per...
-
Four items are for sale in the Dollar Value store. The product and sum of their prices is $7.11. What is the price of each item?
-
You are unemployed, 21 years old, and searching for a job. Until you accept a job offer, the following situation occurs. At the beginning of each year, you receive a job offer. The annual salary...
-
What are the two basic requirements to support the declaration of a cash dividend? What are the effects of a cash dividend on assets and shareholders equity?
-
Describe the roles and responsibilities of management, the board of directors, and independent auditors in the financial reporting process.
-
Independent Businesses. Galati and Brambila formed a corporation called Financial Fitness Systems, each woman taking 50 per cent of the authorized common stock. Galati is a Dottore Commercialista...
Study smarter with the SolutionInn App