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You own a small manufacturing company that makes bicycle headlights. You have the following cost and expected sales and want to make a profit of
You own a small manufacturing company that makes bicycle headlights. You have the following cost and expected sales and want to make a profit of about 30% Variable Cost - $5.00/light Fixed Cost - $300,000 Expected Sales - 150,000 headlights Answer the following questions: 1. Write out the Unit Cost Equation 2. Write out the Price mark up equation 3. What is the unit cost? 4. What is the calculated price to your retailers with the 30% profit? 5. What is your profit based on the expected sales with the 30% profit? 6. You sell a retailer who wants to re-sell your product at a profit of about 50% What do you think the final price will be to look more attractive to the consumer? 7. If you reduce the fixed costs by $75.000, and keep the same price calculated in question 4, what will be your proht (in dollars for sash headlight
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