Question
Thompson Toiletries, Inc has developed a brand extension to its men's cologne line tentatively branded Ode d Puma Cologne. The glass bottle costs 50 cents,
Thompson Toiletries, Inc has developed a brand extension to its men's cologne line tentatively branded Ode d Puma Cologne. The glass bottle costs 50 cents, the liquid costs 10 cents, and the "scent" 3 cents. Heavy advertising expenditures in the first year would cost $950,000/year, with salaries totalling $210,000/year, insurance cost $500/month, hydro $1500/year and purchase of the storefront for $1,250,000. Ode de Puma Cologne sells for $15 per 100ml bottle. They expect to sell 20,000 units in the first year.
Calculate the fixed operating costs per month rounded to the nearest whole number.
| $97,292 |
| $75,400 |
| $1,101,500 |
| $196,234 |
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