The Keurig MINI Plus Brewing System brews a perfect cup of coffee, tea, hot cocoa or iced beverage in under two minutes at the touch of a button. With the choice of three cup sizes, the MINI Plus brewer offers a removable drip tray to accommodate short travel mugs. To operate, you simply add fresh water into the single-use reservoir, choose your favorite K-Cup portion pack, brew and enjoy.

Use the following information to answer the questions below. Please show your work.

Retail Selling Price - $100.00 Retailers Margin - 20% Jobber's Margin - 10% Wholesaler's Margin - 20% Direct Factory Labor - $5 per unit Raw Materials - $3 per unit Administrative Overhead - $1 per unit (at a 100,000 unit volume level) Salespersons' Commissions - 10% of manufacturer's selling price Sales Force Travel Costs - $100,000 Advertising - $300,000 New Equipment Needed - $250,000 (to be depreciated over 5 years) R&D spent up to now - $100,000 R&D to be spent this year - $100,000 (to be amortized over 5 years) Total Market - 1,000,000 units Current Yearly Sales - 250,000 units

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a) What is Keurigs (the manufacturer) selling price?

b) What is Keurigs total variable cost?

c) What is Keurigs total fixed cost?

d) What is the contribution per unit for the Keurig Mini Brew System?

e) What is the break-even volume in units?

f) What is the break-even volume in dollars?

g) What market share does the Keurig Mini Brew System need to break-even?

h) What is the current total contribution?

i) What is the current before-tax profit of the Keurig Mini Brew System brand?

j) What market share must the Keurig Mini Brew System brand obtain to contribute a before-tax profit of $1 million?