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

Media used by competitors in advertising, Media Used by Competitors : While...

Media Used by Competitors : While planning for media the advertiser should consider the media selected by competitors and leaders of that industry. If advertiser doesn't consider c

Demand based pricing, Demand Based Pricing : Described methods belong to th...

Demand Based Pricing : Described methods belong to the category of demand / market based pricing:- 1. What the Traffic can Bear' Pricing 2. Skimming Pricing 3. Penetration

Solve the example using costing techniques, Roux ski is a company that spec...

Roux ski is a company that specializes in the manufacture of ski pants. The senior management accountant has been asked to advise the board of directors on a production and sales p

What is local marketing, What is Local Marketing? Local Marketing: ...

What is Local Marketing? Local Marketing: As marketing programmes are designed to cater the requirements and wants of local customer groups (as trading areas, individual

Selection criteria of every tool - direct marketing, Selection Criteria of ...

Selection Criteria of every tool Key criteria governing an organisation's selection and use of every tool are: 1.  Degree of control required over the delivery of the messa

Characteristics of promotion, Characteristics of promotion: Customer ar...

Characteristics of promotion: Customer are informed about the product or services of the company either at the time of introduction of a new product into the matket or when any

Major sale promotion desicion, what are the major sale promotion ssuold kit...

what are the major sale promotion ssuold kitkat use to attempt to increase sale of kitkat?

Define the term public relation in briefly, Define the term Public Relation...

Define the term Public Relation in briefly. Meaning of Public relations or PR is the management of internal and external communication certainly of an organization to create

Test marketing, various approches followed by FMCG companies in test market...

various approches followed by FMCG companies in test marketing

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