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SECTION II: MARKETING ARITHMETIC QUESTIONS In responding to the questions in this section of the exam, please note: - Pleose onswer All questions in this

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SECTION II: MARKETING ARITHMETIC QUESTIONS In responding to the questions in this section of the exam, please note: - Pleose onswer All questions in this section - Be precise and succinct in your response, and - Where possible you may use bullet points to provide your response. - For all these questions, to EARN FULL credit, you MUST show your work. You will get partial credit ONLY if you show the formulas used for each calculation. - Please write your solutions in a structured and legible manner so that they are clear to follow when grading. Use the information below to respond to the next FOUR (4) questions: Jimaine Grainger, works for GE Appliances as a Product Manager for Home and Kitchen Appliances and draws an annual salary of $100,000. He has primary responsibility for the GE line of Built-in Microwave Ovens, specifically Model PEB9159SFSS. GE sells the model exclusively through Best Buy, Inc with a manufacturer margin of 60%. Best Buy, Inc. sells the model to consumers in the US at a retail margin on the product is 45%. According to a recent report released by the Gartner Group, the total US market for built-in microwave ovens is estimated to be 225,000 units. Jimaine estimates that Model PEB9159SFSS has 6% of this market. Variable costs of manufacturing Model PEB9159SFSS are $142 while the company has invested $525,000 in machinery to manufacture this model. The GE Appliances salesforce is paid a commission of $40 per unit sold. GE Appliances typically employs the services of Regis Transport to ship all the microwave ovens to Best Buy. Regis Transport charges a flat rate of $48 per microwave that is shipped. GE Appliances has allocated $950,000 toward advertising and promotional expenses for this microwave oven. 3. What market share does Model PEB9159SFSS need for GE to breakeven. (4 points)

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