The sales manager of Trisha's Global Marketing (TGM) is considering expanding sales by taking their Original...
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The sales manager of Trisha's Global Marketing (TGM) is considering expanding sales by taking their Original Widget and modifying it for export into the European and Asian markets. Various changes will be made to enhance the product's appeal to local tastes. The information in the table has been assembled by the sales and production departments. The common fixed costs associated with the manufacture of these three products are $2,200,000 per year and TGM has a marginal tax rate of 25%. Item Original Euro Sales Price (per unit) $64.70 $71.00 Variable Costs (per unit) $ 50.00 $ 59.00 Sales Mix 60% 25% Determine the Weighted Average CM of TGM for these products. Round to nearest $0.01. Pacific $ 80.00 $ 66.00 15% The sales manager of Trisha's Global Marketing (TGM) is considering expanding sales by taking their Original Widget and modifying it for export into the European and Asian markets. Various changes will be made to enhance the product's appeal to local tastes. The information in the table has been assembled by the sales and production departments. The common fixed costs associated with the manufacture of these three products are $2,200,000 per year and TGM has a marginal tax rate of 25%. Item Original Euro Sales Price (per unit) $64.70 $71.00 Variable Costs (per unit) $ 50.00 $ 59.00 Sales Mix 60% 25% Determine the Weighted Average CM of TGM for these products. Round to nearest $0.01. Pacific $ 80.00 $ 66.00 15%
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To calculate the weighted average contribution margin CM for TGMs products we need to consider the s... View the full answer
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
Posted Date:
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