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Q. You are the marketing manager of a company which produces window cleaners called Brand "A". You are given the following information: Retail Price of the product is $1.00. Retail Margin on Brand "A" is 30%, while the wholesaler takes a 10% margin. Variable manufacturing cost for Brand A is $0.09 per unit; also the fixed manufacturing costs are $900,000. The advertising budget for this year is $500,000, also the product management expenses (including product manager's salary) is $35,000. The salesperson's commissions are 10% of the manufacturer's selling price, shipping costs are $0.02 per units. The total market demand for window cleaners this year (market size) is 20 million units also Brand A's market share is 24%.
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