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What will be the total contribution to retailers

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Question - Danielle Levesque is preparing a new product analysis for a product she has code-named Panther. Based on her market research she has discovered retailers customarily expect a 40% markup and wholesalers, a 20% markup. Danielle is counting on a 31% margin for the product. Panther's variable costs are $31.50 per unit and estimated total incremental fixed costs are $80,000.

At an anticipated sales volume of 5000 units, will Danielle's Panther make a profit?

What will be the total contribution to retailers?

Reference no: EM133108561

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