You have just been promoted to product manager for the Allgood $($AG$)$ brand multi$-$symptom $12-$hour analgesic product. The AG product is currently selling at a retail price of $$8\mathrm{.}99.$ Retail margins on the product are $33\%,$ while wholesalers take a $12\%$ margin. Allgood and its direct competitors sell a total of $200$ million units annually; Allgood has $25\%$ of this market. Variable manufacturing costs for Allgood are $$2\mathrm{.}92$ per unit. Fixed manufacturing costs are $$950,000.$ The advertising budget for Allgood is $$5,500,000.$ The Allgood product manager's salary and expenses total $$70,000.$ Salespeople are paid entirely by a $12\%$ commission. Shipping costs, breakage, insurance, and so forth are $$0\mathrm{.}15$ per unit.

What is the Allgood selling price?

Question $2(6\mathrm{.}25$ points$)$

Question $2$ options:

$2.$ What is the Allgood unit contribution?

Question $3(6\mathrm{.}25$ points$)$

Question $3$ options:

$3.$ What is the unit margin?

Question $4(6\mathrm{.}25$ points$)$

Question $4$ options:

$4.$ What breakeven unit sale must Allgood do$?$

Question $5(6\mathrm{.}25$ points$)$

Question $5$ options:

$5$ What dollar sales does Allgood need to breakeven?

Question $6(6\mathrm{.}25$ points$)$

Question $6$ options:

$6.$ What market share does Allgood need to break even?

Question $7(6\mathrm{.}25$ points$)$

Question $7$ options:

$7.$ What is Allgoods total dollar sales?

Question $8(6\mathrm{.}25$ points$)$

Question $8$ options:

$7.$ What is Allgood's TOTALgross profit?

Question $9(6\mathrm{.}25$ points$)$

Question $9$ options:

$8.$ What is Allgood's TOTALgross profit margin $?$

Question $10(6\mathrm{.}25$ points$)$

Question $10$ options:

$9.$ What is Allgood's contribution$/$operating profit?

Question $11(6\mathrm{.}25$ points$)$

Question $11$ options:

$11.$ What is Allgood's contribution$/$operating margin?

Question $12(6\mathrm{.}25$ points$)$

Question $12$ options:

Industry demand is expected to increase to $250$ million units next year. The Owner is considering raising his advertising budget to $$10$ million.

$12.$ If the advertising budget is raised, how many units will Allgood have to sell to break even?

Question $13(10$ points$)$

Question $13$ options:

$13.$ How many units will Allgood have to sell in order for it to achieve the same profit level that it did this year?

Question $14(6\mathrm{.}25$ points$)$

Question $14$ options:

$14.$ What will Allgood's market share have to be next year for its profit to be the same as this year?

Question $15(6\mathrm{.}25$ points$)$

Question $15$ options:

THIS PROBLEM IS ABOUT MACY'S

You are the marketing manager for Macy's. You are responsible for the Macy's day parade. If you invest $$500,000$ in producing the parade and if the gross margin for Macy's is $34\%,$ how much business $($sales dollars$)$ will Macy's have to do to breakeven?

$15.$ What Sales dollars for Macy's to breakeven?

Question $16(10$ points$)$

Question $16$ options:

$16.$ How much would Macy's need to sell in dollars to cover every $$1$ additional investment in advertising?