What is the unit contribution for Brand X What is Brand X's break even point WhatisBrandX sbreak evenpoint WhatmarketsharedoesbrandXneedtobreak even What is Brand X's profit impact Industrydemandisexpectedtoincreaseto23millionunitsnextyear Mr Algerisconsideringraisinghisadvertisingbudgetto$1million a Ifadvertisingbudgetisraised,howmanyunitswillBrandXhavetoselltobreakeven b HowmanyunitswillBrandXhavetosellinorderforittoachievethesameprofitimpactthatitdidthisyear c WhatwillBrandX'smarketsharehavetobenextyearforitsprofitimpacttobethesameasthisyear d WhatwillBrandX'smarketsharehavetobeforittohavea$1millionprofitimpact Uponreflection,Mr AlgerdecidesnottoincreaseBrandX'sadvertisingbudget Instead,hethinkshemightgiveretailersanincentivetopromoteBrandXbyraisingtheirmarginsfrom33 to40 Themarginincreasewouldbeaccomplishedbyloweringthepriceoftheproducttoretailers Wholesalermarginswouldremainat12 a Ifretailermarginsareraisedto40 nextyear,howmanyunitswillBrandXhavetoselltobreakeven b How many units will Brand X have to sell to achieve the same profit impact next year as it did this year c What would Brand X's market share have to be for its profit impact to remain at this year's level d What would Brand X's market share have to be for it to generate a profit impact of $350,000 1 What is the unit contribution for Brand X What is Brand X's break even point 2 What is Brand X's break even point 3 What market share does brand X need to break even 4 What is Brand X's profit impact 5 Industry demand is expected to increase to 23 million units next year Mr Alger is considering raising his advertising budget to $1 million a If advertising budget is raised, how many units will Brand X have to sell to break even b How many units will Brand X have to sell in order for it to achieve the same profit impact that it did this year c What will Brand X's market share have to be next year for its profit impact to be the same as this year d What will Brand X's market share have to be for it to have a $1 million profit impact 6 Upon reflection, Mr Alger decides not to increase Brand X's advertising budget Instead, he thinks he might give retailers an incentive to promote Brand X by raising their margins from 33 to 40 The margin increase would be accomplished by lowering the price of the product to retailers Wholesaler margins would remain at 12 a If retailer margins are raised to 40 next year, how many units will Brand X have to sell to break even b How many units will Brand X have to sell to achieve the same profit impact next year as it did this year c What would Brand X's market share have to be for its profit impact to remain at this year's level d What would Brand X's market share have to be for it to generate a profit impact of $350,000

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What is the unit contribution for Brand X? What is Brand X's break-even point? WhatisBrandX?sbreak-evenpoint? WhatmarketsharedoesbrandXneedtobreak-even What is Brand X's profit impact? Industrydemandisexpectedtoincreaseto23millionunitsnextyear.Mr.Algerisconsideringraisinghisadvertisingbudgetto$1million.a.Ifadvertisingbudgetisraised,howmanyunitswillBrandXhavetoselltobreakeven?b.HowmanyunitswillBrandXhavetosellinorderforittoachievethesameprofitimpactthatitdidthisyear?c.WhatwillBrandX'smarketsharehavetobenextyearforitsprofitimpacttobethesameasthisyear?d.WhatwillBrandX'smarketsharehavetobeforittohavea$1millionprofitimpact? Uponreflection,Mr.AlgerdecidesnottoincreaseBrandX'sadvertisingbudget.Instead,hethinkshemightgiveretailersanincentivetopromoteBrandXbyraisingtheirmarginsfrom33%to40%.Themarginincreasewouldbeaccomplishedbyloweringthepriceoftheproducttoretailers.Wholesalermarginswouldremainat12%. a.Ifretailermarginsareraisedto40%nextyear,howmanyunitswillBrandXhavetoselltobreakeven?

What is the unit contribution for Brand X? What is Brand X's break-even point?
WhatisBrandX?sbreak-evenpoint?
WhatmarketsharedoesbrandXneedtobreak-even
What is Brand X's profit impact?
Industrydemandisexpectedtoincreaseto23millionunitsnextyear.Mr.Algerisconsideringraisinghisadvertisingbudgetto$1million.a.Ifadvertisingbudgetisraised,howmanyunitswillBrandXhavetoselltobreakeven?b.HowmanyunitswillBrandXhavetosellinorderforittoachievethesameprofitimpactthatitdidthisyear?c.WhatwillBrandX'smarketsharehavetobenextyearforitsprofitimpacttobethesameasthisyear?d.WhatwillBrandX'smarketsharehavetobeforittohavea$1millionprofitimpact?
Uponreflection,Mr.AlgerdecidesnottoincreaseBrandX'sadvertisingbudget.Instead,hethinkshemightgiveretailersanincentivetopromoteBrandXbyraisingtheirmarginsfrom33%to40%.Themarginincreasewouldbeaccomplishedbyloweringthepriceoftheproducttoretailers.Wholesalermarginswouldremainat12%.

a.Ifretailermarginsareraisedto40%nextyear,howmanyunitswillBrandXhavetoselltobreakeven?

b. How many units will Brand X have to sell to achieve the same profit impact next year as it did this year?
c. What would Brand X's market share have to be for its profit impact to remain at this year's level?
d. What would Brand X's market share have to be for it to generate a profit impact of $350,000?

1. What is the unit contribution for Brand X? What is Brand X's break-even point? 2. What is Brand X's break-even point? 3. What market share does brand X need to break-even 4. What is Brand X's profit impact? 5. Industry demand is expected to increase to 23 million units next year. Mr. Alger is considering raising his advertising budget to $1 million. a. If advertising budget is raised, how many units will Brand X have to sell to break even? b. How many units will Brand X have to sell in order for it to achieve the same profit impact that it did this year? c. What will Brand X's market share have to be next year for its profit impact to be the same as this year? d. What will Brand X's market share have to be for it to have a $1 million profit impact? 6. Upon reflection, Mr. Alger decides not to increase Brand X's advertising budget. Instead, he thinks he might give retailers an incentive to promote Brand X by raising their margins from 33% to 40%. The margin increase would be accomplished by lowering the price of the product to retailers. Wholesaler margins would remain at 12%. a. If retailer margins are raised to 40% next year, how many units will Brand X have to sell to break even? b. How many units will Brand X have to sell to achieve the same profit impact next year as it did this year? c. What would Brand X's market share have to be for its profit impact to remain at this year's level? d. What would Brand X's market share have to be for it to generate a profit impact of $350,000