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You have just been appointed the product manager of the Clearlake counter top water dispensers in a large consumer products company. As part of your
You have just been appointed the product manager of the "Clearlake" counter top water dispensers in a large consumer products company. As part of your new job, you want to develop an understanding of the financial situation for your product. Your brand assistant has provided you with the following fact: What is the contribution per unit for the "Clearlake" brand? What is the break in units and in dollars? What market share does the Clearlake brand need to break even? What is the current total contribution? What is the current before-tax profit of the Clearlake brand? What market share must Clearlake obtain to contribute a before tax profit of exactly $3 million? One of the first decisions you have to make as the brand manager for Clearlake is whether or not to add a new line of counter top water dispensers, the "Super-Clearlake line. The line would beta marketed in addition to the original Clearlake line. Your brand assistant has provided you with the following fact: What is the contribution per unit for the Super-Clearlake brand? What is the break-even volume in units and in dollars? What is the sales volume in units necessary for Super Clearlake to yield in the first year, a 20 percent return on the equipment to beta invested in the project? The $90 selling price Super Clearlake seems high to you. You thought you thought you might lower the price to $82 per unit and raise retail margin to 40 percent. What is the break-even volume in units
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