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Contribution analysis and break even analysis are surely




Question;Paper should;be written in an academic, research style suitable for presentation at a;strategic meeting. The paper may be written with either APA or MLA style of;referencing and should include a minimum of five (5) outside references, in;addition to the text. The final paper should be a minimum of 5-7 pages, not;including title page, executive summary, reference page, and/or appendices.;Contribution analysis and break even analysis are surely the most important and;most frequently used marketing metrics;Happy Days is a producer of high quality organic yogurt, sour cream, and creme;fraiche. They are considering marketing a new line of drinkable yogurt for;children. The new yogurt will be offered in packages of six 6 ounce;individual containers and it will be available in four favors.;The company plans to use TV and newspaper advertising to promote the new;product. Distribution will be through major supermarket chains, which currently;have over 90% of the US yogurt market. The suggested retail price for;each 6 ounce container will be $.60. Because the retailer requires a 30 percent;markup, happy Days' price to the supermarket will be $.40 per six ounce;container. The unit variable costs for the product including packaging will be;$.15;The company estimates it's advertising and promotion expense for the first year;will be $1,500,000.;1. What is the contribution per unit for the children's yogurt product?;2. What is the break-even unit volume for the first year that will cover;the planned advertising and promotion? The break even in dollars?3. How many units of the yogurt must Happy Days sell to earn a profit of;$800,000?;="msonormal">


Paper#46537 | Written in 18-Jul-2015

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