Question
This year, your company plans to spend $6 million on HPRA advertising in North America and $7.5 million on EPRA advertising in North America, which
This year, your company plans to spend $6 million on HPRA advertising in North America and $7.5 million on EPRA advertising in North America, which is the only market region where you are currently selling. You plan to invest $4 million on R&D for the HPRA, $5 million on R&D for the EPRA, and $8 million on R&D for the CPRA. You are also investing $9 million in process improvement. Your pro forma income statement shows a projection for sales office and sales reps expenses of $5.5 million. Shipping and warehouse expenses are projected to be $11.5 million and administration expense are projected at $4 million. Your cost per unit available is $49.20 for HPRA and $77.40 for EPRA. You are forecasting sales of 2,139,000 units for HPRA and 713,000 units for EPRA. You will sell your HPRA for $73 per unit and your EPRA for $105 per unit. What is the contribution per unit (in dollars) for each HPRA and each EPRA that you sell?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started