You are the marketing manager for Justin's, a US manufacturer of gourmet, additive-free almond and peanut butters recently featured in O Magazine. You are currently reviewing your pricing and promotion strategies for the line of 16 oz jars. Your MSRP (Manufacturer's Suggested Retail Price) for a 16 oz jar is S9. The manufacturing cost per jar, which includes ingredients and packaging, is $2.50 You are selling the product primarily through gourmet food retailers like Whole Foods, both online and in-store. You estimate that the average trade margin that these retailers use for this type of product is 40 percent. Distribution costs are estimated at S0.40 per jar. The company also has various fixed expenses for salaries, rent, and other general and administrative functions totaling $800,000 For your promotion strategy you rely significantly on social media. You estimate that you will spend $40,000 on developing content for, and managing your Facebook and Twitter accounts, as well as sending out samples to influential bloggers. You are also planning on attending the 2019 Fancy Food Show in order to increase your distribution. The total cost of participating at the show, including samples, registration fees, travel, etc., would be S60,000. Finally, you will advertise in O Magazine, given that Oprah has already endorsed your product. You think that a $400,000 budget for these ads will be sufficient 1. How many jars of Justin's do you need to sell in order to break-even? 2. Your boss also thinks that you should advertise in Cooking Light, since that is her favorite magazine and the target audience of higher income healthy eaters would be a good match for the product. The magazine currently has an estimated audience of 11 Million readers. Publishing two 1/3 page ads in Cooking Light would be an additional $120,000 a. How many more jars do you need to sell in order to cover the additional cost? b. Do you think the additional advertising is going to be worthwhile? 3. The US market for almond and peanut butters is 900 million dollars in retail sales. Given that you are selling a niche brand, you are estimating to take a modest 1 % share of the total market in the coming fiscal year. Put together a pro forma income statement for the coming year based on your sales projection and your cost estimates (excluding the Cooking Light ad) 4. What is your gross margin in percent? You are the marketing manager for Justin's, a US manufacturer of gourmet, additive-free almond and peanut butters recently featured in O Magazine. You are currently reviewing your pricing and promotion strategies for the line of 16 oz jars. Your MSRP (Manufacturer's Suggested Retail Price) for a 16 oz jar is S9. The manufacturing cost per jar, which includes ingredients and packaging, is $2.50 You are selling the product primarily through gourmet food retailers like Whole Foods, both online and in-store. You estimate that the average trade margin that these retailers use for this type of product is 40 percent. Distribution costs are estimated at S0.40 per jar. The company also has various fixed expenses for salaries, rent, and other general and administrative functions totaling $800,000 For your promotion strategy you rely significantly on social media. You estimate that you will spend $40,000 on developing content for, and managing your Facebook and Twitter accounts, as well as sending out samples to influential bloggers. You are also planning on attending the 2019 Fancy Food Show in order to increase your distribution. The total cost of participating at the show, including samples, registration fees, travel, etc., would be S60,000. Finally, you will advertise in O Magazine, given that Oprah has already endorsed your product. You think that a $400,000 budget for these ads will be sufficient 1. How many jars of Justin's do you need to sell in order to break-even? 2. Your boss also thinks that you should advertise in Cooking Light, since that is her favorite magazine and the target audience of higher income healthy eaters would be a good match for the product. The magazine currently has an estimated audience of 11 Million readers. Publishing two 1/3 page ads in Cooking Light would be an additional $120,000 a. How many more jars do you need to sell in order to cover the additional cost? b. Do you think the additional advertising is going to be worthwhile? 3. The US market for almond and peanut butters is 900 million dollars in retail sales. Given that you are selling a niche brand, you are estimating to take a modest 1 % share of the total market in the coming fiscal year. Put together a pro forma income statement for the coming year based on your sales projection and your cost estimates (excluding the Cooking Light ad) 4. What is your gross margin in percent