Reference no: EM133057396
Question - In this exercise your task is to work out the sales price that customers must be charged so that the company makes a $2000 profit. You will need to create an Income and Expenditure Budget to do this.
Exercise Instructions - You are planning the launch of the new IPad and you hope to make $2,000 profit out of it.
The expected number of sales is 100 units.
The research and activities of the marketing department will cost $1,000 this year.
Other expected costs include:
Advertising $1,000, promotions $500, Magazines $200, Websites $100, Service $200, and Outsourced marketing will cost $200.
What you must find out!
How much will you need to charge per unit of sale to make the target $2,000 profit if you have 100 units sold?
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