$1.$ Squiggle, a ballpoint pen manufacturing start$-$up$,$ estimates the following costs:

Plastic and Metal Parts $$0\mathrm{.}12$ per pen

Ink $$0\mathrm{.}01$ per pen

Direct Labour $$0\mathrm{.}02$ per pen

Selling Price $$0\mathrm{.}40$ per pen

Advertising $$80,000$

Managerial and Admin $$200,000$

Sales Commissions $10\%$ of Selling Price

Factory Overhead $$140,000$

There is an estimated market for $10$ million ballpoint pens of this grade.

Calculate:

a$)$ Unit Contribution,

b$)$ Breakeven volume in units,

c$)$ Market share necessary to break even,

d$)$ Total profit for the company if $3$ million pens are sold, and

e$)$ Volume needed to generate $$525,000$ in profits.

$2.$ Dave House, an engineer and entrepreneur, is evaluating the feasibility of manufacturing a

line of self$-$sealing stem bolts in the unused space at his existing flux capacitor factory.

The factory can produce $1$ million units of the bolts. Fixed costs associated with the bolts are

$$2$ million and the maximum selling price is $$10$ a unit. If variable costs are $85\%$ of the selling

price, should Dave pursue this idea?

$3.$ Joe Podivinski, $19,$ needs a job to cover part of his university tuition next year. He is looking

to raise $$7,200$ over the summer towards this goal.

Acme Vacuum Company would hire him to sell robotic vacuum cleaners door$-$to$-$door. The

company estimates that Joe$$s variable costs per sale $($including paying Acme for its vacuums$)$

will amount to $70\%$ of the selling price of the units. Joe$$s fixed costs for the summer, including

rent and expenses, is $$2,800.$ Acme estimates a keen salesperson can sell $$30,000$ of robotic

vacuum cleaners over the summer.

Joe also knows he can instead return to his union job in a manufacturing plant. Although his

salary would be assured at that job, he would be able to save only $$6,200$ for tuition.

Which job should Joe take? What factors did you consider when making your decision?

$4.$ Martin$$s Board Game Emporium sells games purchased from a wholesaler, who in turn buys

them from a manufacturer. The wholesaler charges a $20\%$ margin on its selling price, and

Martin enjoys a modest $95\%$ mark$-$up on cost$.$ If the manufacturer sells the games for $$20,$

what is Martin$$s selling price to customers?