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You have just become the marketing manager for a new line of DVD players.

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You have just become the marketing manager for a new line of DVD players. Your Fixed Costs (FC) for running your plant are $1,300,000 a month. This includes salaries, insurance, rent, amortized capitalization of equipment, etc.;Your Variable Costs (VC) per unit will, of course, vary. You have looked at your hourly salaries, your utilities usage, your raw materials used to make your DVD player, shipping, promotional programs, and other variable costs. These Variable Costs (VC) average $1,634,000 per month.;Your plant is able to produce 76,000 DVD players each month (30 days per month).;Your price to your wholesaler distributor is $71.25. The retailer's price (e.g., Best Buy) from the wholesale distributor is $94.70. Your suggested list price for consumers for the DVD Player at the retail store, e.g., Best Buy, is $129.99.;What is your Unit FC per DVD player?;Your Unit VC per DVD Player?;How many DVD Players do you need to sell each month to "break even"?

 

Paper#32597 | Written in 18-Jul-2015

Price : $27
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