Business, 29.10.2021 16:40 ArandomMexican3222

Horatio Alger has just become product manager for Brand X. Brand X is a consumer product with a retail price of $1.00. Retail margins on the product are 33%, while wholesalers take a 12% margin. Brand X and its direct competitors sell a total of 20 million units annually; Brand X has 24% of this market. Variable manufacturing costs for Brand X are $0.09 per unit. Fixed manufacturing costs are $900,000. The advertising budget for Brand X is $500,000. The Brand X product manager's salary and expenses total $35,000. Salespeople are paid entirely by a 10% commission. Shipping costs, breakage, insurance, and so forth are $0.02 per unit. a). What is the unit contribution rounded to whole pennies?
b). What is the break-even point in whole units?
c). What market share, as a percentage, is needed to break even?

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Horatio Alger has just become product manager for Brand X. Brand X is a consumer product with a reta...

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