Marketing hw, Marketing Management

Assignment Help:
MARKETING PRINCIPLES
MKTG 305


Break-even Assignment


Often a firm will calculate the break-even point for a price. That is, if we set the price at $X, then how many units will we need to sell to cover costs (that is, our break-even point). Work through the following data and questions to gain a better understanding of this approach.
QUESTIONS
1. Start by completing the above table under the assumption that the product will be sold for $30. (It will be easiest to use Excel to complete the table.) How many units need to be sold to break-even at a product price of $30?
2. Now recalculate the table under the assumption that the product will be sold for $15. How many units need to be sold to break-even at a product price of $15?
3. What do you think you would set first: the sales target or the price? Why?

No. of Units Allocated Fixed Costs Variable Cost/Unit Total Production
Cost Average Unit Cost Unit Price Total Sales Revenue Gross Profit
500 $10,000 $10 $30
1,000 $10,000 $10
1,500 $10,000 $10
2,000 $10,000 $10
2,500 $10,000 $10


Related Discussions:- Marketing hw

Scope , SCOPE, OBJECTIVES AND PURPOSES OF  MANAGEMENT INFORMATION SYSTEM...

SCOPE, OBJECTIVES AND PURPOSES OF  MANAGEMENT INFORMATION SYSTEM   The scope and purposes of Management Information System can be better understood if we examine each word i

What is the meaning of selling concept, What is the meaning of selling conc...

What is the meaning of selling concept? Meaning: Selling concept declares that consumers will not buy adequate of the organization’s products unless the organization unde

Why do businesses meet with failures, Question 1: If an organisation de...

Question 1: If an organisation decides to start trading internationally, besides exporting, it has various modes of entry. Critically explain and evaluate each mode of entry wi

What is product strategies, What is Product Strategies? Product Strat...

What is Product Strategies? Product Strategies: The product is one of the most significant elements of a marketing program. A company is generally called by the products

FOUR TRENDS IN THE MACRO MARKET, Identify and briefly describe four trends ...

Identify and briefly describe four trends in the macro/market environment that will have or recently had an influence on the selected industry.

Current marketing and internal firm environments, Your first assignment is ...

Your first assignment is to conduct a marketing audit on your chosen product. Information that will assist you to analyze this firm can be found on the internet, you can look to fi

How is marketing an indispensable activity, How is marketing for any organi...

How is marketing for any organization an indispensable activity? “Marketing is an indispensable activity for any organization”. Well I am agreeing with the declaration, because

Segmentation, identify and explain four common segmenting variables

identify and explain four common segmenting variables

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd