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

Explain about the price leadership, Explain about the Price Leadership. ...

Explain about the Price Leadership. Price Leadership: Price leadership strategy prevails within oligopolistic markets one member of the industry, due to its size or comma

FMCG, 1. What is test marketing? Explain the various approaches that are fo...

1. What is test marketing? Explain the various approaches that are followed by FMCG companies in test marketing.

What are the marketing objectives, What are the marketing objectives Th...

What are the marketing objectives This mix is assembled keeping in mind the needs of target customers and it varies from one organisation to another depending upon its availabl

Cultural, How does cultural, social, personal and psychological factors inf...

How does cultural, social, personal and psychological factors influence buyer behaviour. Give examples

Element of marketing planning, Element of Marketing Planning: marketing pl...

Element of Marketing Planning: marketing planning involves setting of objectives and making plans for how these objectives can be achieved. It involves deciding the policies strat

Effect of discounting prices, Effect of Discounting Prices Another sign...

Effect of Discounting Prices Another significant function of a marketing manager is to find any discounting of prices of the goods and services of a business. Every business di

What are the problems with green marketing, What are the problems with gree...

What are the problems with green marketing? Problems with green marketing: During using green marketing the firms should overcome a number of potential problems. Those proble

Development of market segmentation, Problem 1: The development of marke...

Problem 1: The development of market segmentation and target marketing reflect the movement away from production orientation towards marketing orientation. Discuss. Problem

Circle, ABCD is a cyclic quadrilateral.O is the center of the circle if BOD...

ABCD is a cyclic quadrilateral.O is the center of the circle if BOD=16+0.find BPD

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