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

What are various types of pricing strategies, What are various types of pri...

What are various types of pricing strategies? Adopted by the company. Currently we will discuss the various types of pricing strategies within detail are specified here by poin

Generic product, Generic Product A generic product is an unbranded, ine...

Generic Product A generic product is an unbranded, inexpensive, plainly packaged version of a common consumer product. It is usually standard for slightly substandard quality c

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

Responsibility of marketing communications manager, Responsibility of marke...

Responsibility of marketing communications manager Tasks are undertaken in a context within which there may be many episodes or only a few. Note that more than one message is o

Stan australia, need to write an assignment on stan Australia over 2500 wor...

need to write an assignment on stan Australia over 2500 words by using strategies, ideas, using 4ps etc

Briefly describe the functionalities of crm sub modules, Question 1: Br...

Question 1: Briefly describe the functionalities of CRM sub modules. List out the benefits of CRM Systems. Functionalities List the benefits  Question 2:

Write on structural and institutional change, Question 1: "There have b...

Question 1: "There have been evident signs that the public sector needs to be reformed as the socio-economic context in which Mauritius is faring has changed." Discuss the pres

Features of advertising, Features of advertising 1. It is mass communic...

Features of advertising 1. It is mass communication process every piece of advertising  gurantees satisfactionof  human wants and wnts  them from needs and desires advertisers

Value, what is modern and traditional value delivery approach???

what is modern and traditional value delivery approach???

Product margin, The product margin is calculated as product sales minus the...

The product margin is calculated as product sales minus the direct costs of selling the product.

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