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 about the demographic trends, Explain about the Demographic Trends....

Explain about the Demographic Trends. Demographic Trends: The changes within demography have significant implications for human resource management. A main change compris

Buying process, what is proposal solicitation in buying process

what is proposal solicitation in buying process

Value pricing, Value  Pricing   :  Value  pricing  is  a  modern  innovati...

Value  Pricing   :  Value  pricing  is  a  modern  innovative  and  individual method of pricing. Value pricing rests on the principle that the reason of pricing is not to recover

Explain the term service encounter, Question : (a) Explain the term se...

Question : (a) Explain the term service encounter. (b) With reference to examples of services, discuss the three levels of customer contact services. (c) One tre

Case study, the rise of personal computers in the mid 1980s spurred interes...

the rise of personal computers in the mid 1980s spurred interest in computer games

Deciding on the advertising budgets, Deciding on the advertising budgets:...

Deciding on the advertising budgets: How does a company know if it will be spending the right amount? If it spends too little, the effect will be negligible. If it spends too

Marketing mix, what is the concept of augmented product

what is the concept of augmented product

What are the product levels in marketing, What are the product levels in ma...

What are the product levels in marketing? Product Level in Marketing: Marketers require to think through five level of product when planning its market giving as each lev

Area of a square and area of a rectangle, a side of a square is represented...

a side of a square is represented by x-3.what expression represents the area of the square?

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