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

Subjective method for measuring advertising effectiveness, Q. Subjective me...

Q. Subjective method for measuring advertising Effectiveness? Subjective method for measuring advertising Effectiveness: - There are a variety of methods given by different e

International marketing, 1. Define international marketing and furnish its ...

1. Define international marketing and furnish its features. 2. avid Ricardo's theory of comparative advantage is an improvement over Adam Smith's theory of absolute advantage.

Undermining the position of women - ethical aspects of ads, Q. Undermining ...

Q. Undermining the Position of Women - ethical aspects of ads? A few ads are undermine the position of aged persons, women. In a few cases women are shown as sex-object. They a

Determine about the industrial goods, Determine about the Industrial Goods ...

Determine about the Industrial Goods   Goods meant for consumption or use as inputs in production of other products or provision of some services are called as 'industrial go

Explain in brief about relational communications, Explain in brief about Re...

Explain in brief about Relational Communications   Orientation Explanation Information and promotion Communications ar

Natural environment - marketing environment, Natural Environment: (1)...

Natural Environment: (1) Natural Resources: Business depends on natural resources. Raw material is one main part of these resources and firms are concerned with their availa

What is internal marketing, What is internal marketing? Internal Marke...

What is internal marketing? Internal Marketing: Holistic marketing includes internal marketing, making sure that everyone into the organization embraces suitable marketing

Implement a successful crm strategy, When customer-facing managers are aske...

When customer-facing managers are asked whether their CRM initiatives have been a success , the chances are that many of them will say "no". Ask them why they failed, and they will

Explain about marketing network in relationship marketing, Explain about ma...

Explain about marketing network in relationship marketing. Relationship marketing has the intend of building manually satisfying long-term relationships along with key partie

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