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

Explain the marketing communications mix, Explain the Marketing Communicati...

Explain the Marketing Communications Mix Marketing communications mix comprises a set of tools (disciplines) which can be used in various combinations and different degrees of

Product mix, What do you mean by product mix .

What do you mean by product mix .

Entrepreneurship, 1) What are the stages described in the model of the entr...

1) What are the stages described in the model of the entrepreneurial process? What are the factors that give birth to a new enterprise and influence how it develops from an idea to

What is structural realignment, What is Structural realignment Marketi...

What is Structural realignment Marketing communications agencies are attempting to adjust the way they can best serve interests of their clients. One of the results is structu

Determine in brief about marketing communications, Determine in brief about...

Determine in brief about Marketing communications Marketing communications are a management process through which an organisation engages with its numerous audiences. By under

Explain major environmental issues, Problem 1 Given the importance of e...

Problem 1 Given the importance of environmental issues from a political, social, economic and business point of view, it should come as no surprise that accounting for the env

What are the ways of foreign market entry, What are the ways of foreign mar...

What are the ways of foreign market entry? The prospective global marketer has decided onto a market entry strategy and a marketing mix. Such are two main methods of foreign ma

Describe the one-way communication, Describe the one-way communication ...

Describe the one-way communication By recognising different transactional and relationship needs of the target audience, marketing communications can be used to engage with a v

Illustrate an example of industrial goods, Illustrate an example of industr...

Illustrate an example of industrial goods Same product may be classified as consumer goods and industrial goods depending upon its end use.  Take for illustration the case of c

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