Solution of Strategic Marketing Problems Chapter 2 Essay

QUESTION 5: Kai decides to keep his price the same and add color, increasing variable costs by $0.40 per issue. What is the percent increase in unit volume (copies per issue) required to maintain $500 profits and cover the increased fixed and variable

3. Assume that the selling prices, volumes, and material costs for the 1991 model year will not change for fuel tanks and doors produced by the ACF of Bridgeton Industries. Assume also that if manifolds are produced, their selling prices, volume, and material costs will not change either.

New Contribution Margin = New Price per unit – Variable cost per unit =$8.5-$2.5 =$6

8.20 equals $ 86,700. The contribution margin per unit at a retail price of Cr. 6.85 equal 1.95. The required volume will be the result of dividing the profit impact on the contribution margin per unit.

13. If the selling price is $22 per unit, what is the contribution margin per unit sold?

Sales (in $ 1000s)= 16,020.78118 + 149.15175 * %spanishsp – 44.16538 * %dryers – 112.48017 * %freezer – 79.84655 * %sch0-8 + 9,393.82229 * comtype1 + 3,802.26442 * comtype2 – 3,123.24462 * comtype7

| Target # of Passengers = Fixed Cost + Target Profit/ Unit Contribution Margin = 3,600,000 + 1,071,428 / (Selling Price – Variable Cost Per unit) = 4,671,429 / (205 – 85) = 4,671,429 / 120 = 38,928.57

Contribution Margin = (Unit selling price – unit variable cost) / unit selling price = ($9.00 – $2.60) / $9.00 = 0.7111 = 71.111%

Springfield Express has experienced an increase in variable cost per passenger to $85 and an increase in total fixed cost to $ 3,600,000. The company has decided to raise the average fare to $ 205. If the tax rate is 30 percent, how many passengers per month are needed to generate an after-tax profit of $ 750,000?

Variable Cost per Unit = ( $59,000 − $38,000 ) ÷ ( 3,000 − 1,250 ) = $12 per unit

Marketing is an essentially about marshalling the resources of the organization so that they can meet the changing needs of the customers on whom the organization depends. As a verb, marketing is all about how an organization addresses its markets. Marketing is “The management process which identifies, anticipates and supplies the customer requirements efficiently and profitability”.

Question B: How many units per year must be sold with each process to have annual profits of $50,000 if the selling price is $6.95 per unit?

We want to know the amount aluminum cans account for in the cost of sales. According to the provided information cans account for 60% of net revenues. Net revenue in 1994 will be $231,207 * 1.04 = $240,455. The cans contribute 0,60 * $240,455 = $144,273. With a gross margin on cans of 27% the cost of sales of aluminum cans for 1994 is

This equation is solved for the sales volume in units. c. In the graphical approach, sales revenue and total expenses are graphed. The break-even point occurs at the intersection of the total revenue and total expense lines. 8-2 The term unit contribution margin refers to the contribution that

The most important part of the report was the control process, here I have suggest some control techniques to make the business more effective and developed contingency plans to come out successfully if any unpredicted or incident happen in the internal or external environment.