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

Discuss combination of push-pull sales promotion strategies, Discuss about ...

Discuss about the combination of push and pull sales promotion strategies. Combination of push and pull sales promotion strategies Car dealers frequently provide a

What are benefits of a firm by retaining its customers, What are some benef...

What are some benefits of a firm by retaining its customers? A firm accrues several benefits by retaining its customers are as give below: Increased Revenue: it increases

Assighment, briefly explain the trend?

briefly explain the trend?

Buying decision process, with reference to the purchase of a new television...

with reference to the purchase of a new television set explain the buying decision process which a typical consumer goes through demonstrate how company can formulate their marketi

Brand building process, Brand building process: Having understood the...

Brand building process: Having understood the basis of the brand equity, let us now turn to the brand building process. As we saw earlier, brands are built over a period of t

Illustrate the effect on consumer choice, Q. Illustrate the Effect on Consu...

Q. Illustrate the Effect on Consumer Choice? Effect on Consumer Choice:- Advertising has favourable consequence on consumer-choice. Advertising give information about a variety

What is advertising agency, Q. What is Advertising Agency? Advertising ...

Q. What is Advertising Agency? Advertising Industry engages three major components. Advertiser, Media and advertising agency. The person who makes a decision to advertise the p

Different levels of market segmentation, Q.   Described different levels of...

Q.   Described different levels of market segmentation? Ans.: The beginning point for segmentation is mass marketing. In mass marketing,  the  seller  engages in  mass produc

Investment portfolio advice and management, You are a manager in the invest...

You are a manager in the investment industry, whose role is to provide investment portfolio advice and managementto a client, who is your investorprincipal. You should identify t

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