You have just been promoted to product manager for the Smiths Apothecary Company brand called Smiths Excelsior Drink. The product is currently selling at a retail price of $20.00. Retail margins on the product are 40%, while wholesalers take a 20% margin.

Smith and its direct competitors sell a total of 300 million units annually; Smith has 30% share of this

market. Variable manufacturing costs for Smith are $2.25per unit. Fixed manufacturing costs are

$950,000.The advertising budget for Smith is $10,000,000. A 9.5% commission on all dollar sales paid to

sales team. Shipping costs, breakage, insurance, and so forth are $4.35 per unit.

Question 39

What is the Unit selling price for Smiths wholesalers to retailers?

Question 40 options:

What is the unit selling price for Smith to wholesalers?

Question 41 options:

How many units does Smith sell annually?

Question 42 options:

What is the total unit variable cost for Smiths product?

Question 43 options:

What is the unit contribution for Smiths product?

Question 44 options:

What is the unit contribution Margin for Smith's product?

Question 45 options:

What is Smiths total annual Sales Dollars?

Question 46 options:

What is Smiths annual Cost of Sales?

Question 47 options:

What is Smiths Gross profit dollars?

Question 48 options:

What is Smiths fixed costs?

Question 49 options:

What is Smiths total contribution profit/operating profit for the Excelcor Drink?

Question 50 options:

What is Smiths total Operating MARGIN for the Excelcor Drink?

Question 51 options:

What is Smiths break-even point in units?

Question 52 options:

What is Smiths break-even point in dollars?

Question 53 options:

What market share of unit sales does Smith need to break even?

Question 54 options:

Industry demand is expected to increase to 500 million units next year. You are still the Marketing manager for Smiths and are considering raising your advertising budget by an additional $15 million.

If the advertising budget is raised, how many units will Smith have to sell to break even?

Question 55 options:

How many units will Smith have to sell in order for it to achieve the same dollar profit that it did this year including new advertising ?

Question 56 options:

What will Smith's market share have to be next year for its dollar profit to be the same as this year including new ad budget?