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Your company manofactures DVD players. Currently, Your selling prite is $ 1 0 0 . The tetal velume for DVD players in your market is

Your company manofactures DVD players. Currently, Your selling prite is $100. The tetal velume for DVD players in your market is 750,000 units and your expected market share is 18% for the uptoming year. Your production costs for each unit is 35% of selline price and you etitfentty spend t6% of the selling price on promotion. You distribute through a wholesaler who has a contribution margin of 36%. who in turn sells to retailers who have an average contribution margin of 40%.
Answer the following questions:
a. How many DVD players would you have to sell over the year to break-even if your fixed costs were $2,000,000 and your desired profit per unit was 30% of the sellin price?
b. How much money would the retailer make/lose for your brand if fixed costs to the product totaled $10,000,000 and they offered a $50 coupon that was redeemed at a rate of 20%?
C. If you could spend an additional $300,000 in promotion this year and ing market share to 19%, would you recommend spending the additional m or why not?
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