1. What is the contribution per unit for the Super Flexo brand?

2. What is the break-even volume in units and in dollars?

3. What is the sales volume in units necessary for Super Flexo to yield, in the first year, a 20 percent return on the equipment to be invested in the project?

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2. One of the first decisions you have to make as the brand man Flexo is whether or not to add a new line of razors, the "Super Flexo" lin ager for e. This line would be marketed in addition to the original Flexo line. Your brand assistant has provided you with the following facts: a. Retail selling price b. All margins the same as before c. Direct factory labor d. Raw materials e. Additional factory and administrative overheads $40 per unit $ 3 per unit $ 2 per unit $2 per unit (at a 50,000 unit volume level) f. Salespersons' commissions the same percent as before g. Incremental sales force travel cost h. Advertising for Super Flexo i. New equipment needed 50,000 $600,000 $500,000 (to be depreciated j. Research and development spent up to now k. Research and development to be spent this year over 10 years) $200,000 to commercialize the product $500,000 (to be amortized over five years)