Mr. Alex is thinking of entering the fruit juice market in California with a brand called...

Transcribed Image Text:

Mr. Alex is thinking of entering the fruit juice market in California with a brand called Propicana. Mr. Alex would have to spend $20 million towards fixed costs. Only two supermarket chains, which sells 45% of total fruit juices sold in the target market, will be carrying the new brand. According to Mr. Alex, this new brand, to be priced at $1 for 100 ml bottle, will sell enough to carry his company out of the red. A Marketing Research agency contacted a sample of individuals to get intent to buy information for this new brand. They reported that with full awareness and availability, the number of respondents who have given different ratings for 'intent to buy' on a 5-point scale (ranging from 0= would definitely not buy to 5= would definitely buy') is given as follows: Response on 0-5 scale 1 2) 2 3 4 5 Mr. Alex's accounting expert reported that the variable cost for 100 ml bottle would be $1.10. If the target market in California consists of 150,000 individuals, each buying a 10 bottles per week, answer the following questions: 1) Calculate the break even volume. Justify your answers. Percent of responses 25% 20% 18% 26% 11% What would be yearly sales for Helloggs for the current year? Mr. Alex is thinking of entering the fruit juice market in California with a brand called Propicana. Mr. Alex would have to spend $20 million towards fixed costs. Only two supermarket chains, which sells 45% of total fruit juices sold in the target market, will be carrying the new brand. According to Mr. Alex, this new brand, to be priced at $1 for 100 ml bottle, will sell enough to carry his company out of the red. A Marketing Research agency contacted a sample of individuals to get intent to buy information for this new brand. They reported that with full awareness and availability, the number of respondents who have given different ratings for 'intent to buy' on a 5-point scale (ranging from 0= would definitely not buy to 5= would definitely buy') is given as follows: Response on 0-5 scale 1 2) 2 3 4 5 Mr. Alex's accounting expert reported that the variable cost for 100 ml bottle would be $1.10. If the target market in California consists of 150,000 individuals, each buying a 10 bottles per week, answer the following questions: 1) Calculate the break even volume. Justify your answers. Percent of responses 25% 20% 18% 26% 11% What would be yearly sales for Helloggs for the current year?