4a) The marketing and sales team for Dapple Corporation feel there is room in the market to introduce alternative designer branded merchandise into its range of laptops. This would mean outsourcing the manufacturing of accessories such as laptop covers. Due to the quick response times required to meet the demands of Dapple's customer orders, the designer brand manufacturer is proposing to set up a new manufacturing business unit close to Dapple Corporation to produce six new designs for designer laptop covers. Operations and purchasing are not convinced this arrangement will be cost effective and so wish to conduct a breakeven analysis of the situation to ensure the designer brand manufacturer's operation is profitable. The fixed costs for rent and labour are £5,000 per month. The Forecasted Sales Price, Variable Cost and Forecasted Monthly Sales Quantity for the six new products are given in Table 3 below. ITEM i Sales Price, S Product A Product B Product C Product D Product E Product F 20 25 18 30 20 Variable Cost, V Forecasted monthly sales quantity, Q 9.8 2000 12.9 3000 7.5 1000 10.7 500 10.5 300 12.3 2000 35 Table 3. Data for Dapple Corp's outsourcing decision Using the information provided in the table calculate the following: The forecasted monthly revenue for each product, The unit contribution of each product, The forecasted monthly contribution for each product.

MARKETING 2018
19th Edition
ISBN:9780357033753
Author:Pride
Publisher:Pride
Chapter1: An Overview Of Strategic Marketing
Section1.2: Dollar Shave Club: The Company For Men
Problem 1C
icon
Related questions
Question
←
10:36 A-✔ MM..
+20 111 111 2010
Yesterday, 19:42
4a) The marketing and sales team for Dapple Corporation feel there is room in the market to introduce
alternative designer branded merchandise into its range of laptops. This would mean outsourcing the
manufacturing of accessories such as laptop covers. Due to the quick response times required to meet
the demands of Dapple's customer orders, the designer brand manufacturer is proposing to set up a
new manufacturing business unit close to Dapple Corporation to produce six new designs for designer
laptop covers. Operations and purchasing are not convinced this arrangement will be cost effective
and so wish to conduct a breakeven analysis of the situation to ensure the designer brand
manufacturer's operation is profitable.
The fixed costs for rent and labour are £5,000 per month. The Forecasted Sales Price, Variable Cost
and Forecasted Monthly Sales Quantity for the six new products are given in Table 3 below.
ITEM i Sales Price, S Variable Cost, V
Product A
Product B
Product C
Product D
Product E
Product F
20
25
|||
18
30
20
9.8
12.9
7.5
10.7
10.5
12.3
vo 46 ll 12%
|
LTE2
35
Table 3. Data for Dapple Corp's outsourcing decision
Using the information provided in the table calculate the following:
The forecasted monthly revenue for each product,
The unit contribution of each product,
The forecasted monthly contribution for each product.
Forecasted monthly sales quantity, Q
2000
3000
1000
500
300
2000
O
Г
Transcribed Image Text:← 10:36 A-✔ MM.. +20 111 111 2010 Yesterday, 19:42 4a) The marketing and sales team for Dapple Corporation feel there is room in the market to introduce alternative designer branded merchandise into its range of laptops. This would mean outsourcing the manufacturing of accessories such as laptop covers. Due to the quick response times required to meet the demands of Dapple's customer orders, the designer brand manufacturer is proposing to set up a new manufacturing business unit close to Dapple Corporation to produce six new designs for designer laptop covers. Operations and purchasing are not convinced this arrangement will be cost effective and so wish to conduct a breakeven analysis of the situation to ensure the designer brand manufacturer's operation is profitable. The fixed costs for rent and labour are £5,000 per month. The Forecasted Sales Price, Variable Cost and Forecasted Monthly Sales Quantity for the six new products are given in Table 3 below. ITEM i Sales Price, S Variable Cost, V Product A Product B Product C Product D Product E Product F 20 25 ||| 18 30 20 9.8 12.9 7.5 10.7 10.5 12.3 vo 46 ll 12% | LTE2 35 Table 3. Data for Dapple Corp's outsourcing decision Using the information provided in the table calculate the following: The forecasted monthly revenue for each product, The unit contribution of each product, The forecasted monthly contribution for each product. Forecasted monthly sales quantity, Q 2000 3000 1000 500 300 2000 O Г
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MARKETING 2018
MARKETING 2018
Marketing
ISBN:
9780357033753
Author:
Pride
Publisher:
CENGAGE L