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

Concept of position against competition strategy, What is concept of Positi...

What is concept of Position against Competition Strategy? Position against Competition: Many more times, success for a company’s strategies comprises looking for weak po

Explain about marketing communication, Q. Explain about Marketing communica...

Q. Explain about Marketing communication? Marketing communication: - Is the procedure in which two or more persons consciously or unconsciously attempt to influence each othe

Explain major factors influencing the purchasing behaviour, Problem 1: ...

Problem 1: Discuss how the three elements of the extended marketing mix relating specifically to people, process, and physical evidence affect the marketing of services. Pr

What is test marketing strategy development, What is Concept Testing Strate...

What is Concept Testing Strategy Development? Test Marketing: Throughout this stage the product is in fact tried out in selected Market Segments only based upon the result

Marketing, what are the different retail strategies

what are the different retail strategies

Product policy, Explain product policy in relation to agriculture

Explain product policy in relation to agriculture

Define emphasis of marketing to offer product to customers, Define emphasis...

Define emphasis of marketing to offer product to customers. Marketing lays emphasis onto giving the product to customers at the right price, at the right place, in the right pl

Selling and sales management , The assessment for this module is to produce...

The assessment for this module is to produce the elements of a sales plan. The case study assesses your understanding and ability to construct a sales presentation plan and correct

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