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

Promotion mix, Developing a promotion mix is contingent on many factors, in...

Developing a promotion mix is contingent on many factors, including the type of product and the product''s attributes. Which of the four promotional methods-advertising, personal s

#title.culture and consumer behaviour., A firm is intending to operate acro...

A firm is intending to operate across a number of markets in the world.you have been hired to help them in finding consistent methods to analyse their cross culture markets.Using r

Marketing in the automobile industry and ncc, Question 1) Consider mar...

Question 1) Consider marketing in the automobile industry. Either for your car, or for that of someone you know, how did marketing strategy impact the purchase decision? Pleas

Explain the term- fast-moving consumer goods, Explain the term- fast-moving...

Explain the term- fast-moving consumer goods Marketing communications which are undertaken by organisations within these systems can be regarded as a series of communication ep

States the term product line and discuss in brief, States the term Product ...

States the term Product Line and discuss in brief. Product Line: This is a group of products which is closely related since they perform a similar function, targeted at s

Advantages of product branding to producers, Advantages to producers 1...

Advantages to producers 1.       Easy to advertise: when the product or producers of an enterprise are marked with a particular brand, it makes very easy for the enterprise

Describe the manufacturing process , As discussed in the video lectures for...

As discussed in the video lectures for this module, the president plays many different roles: Chief of State; Chief Executive; Chief Diplomat; Commander-in-Chief; Chief Legislator.

What is product line pricing, What is Product Line Pricing? Product L...

What is Product Line Pricing? Product Line Pricing: Strategic Marketing has led firms to take on segmentation and diversification strategies that have results within the

Explain the different pricing methods, Question: With the recent upsurg...

Question: With the recent upsurge in inflation pressures, there has been growing concern expressed by consumer groups, unions and opinion leaders about the erosion purchasin

Show the economic aspects of advertising, Q. Show the Economic Aspects of A...

Q. Show the Economic Aspects of Advertising? Advertising has a variety of positive and negative economic aspects. The major positive economic effects are: It helps the producer

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