1. What is the unit cost for each mower this company produces? (AACSB: Communication; Analytic Reasoning)2. If the manufacturer desires a markup of 60 percent on sales, at what price should this product be sold to a reseller such as a wholesaler or distributor? (AACSB: Communication; Analytic Reasoning)

Travel Budget: Marketing by the Numbers When introducing new products, it's usually not easy to de- 1. What is the unit cost for each mower this compa termine at what price it should be offered. At the very least, duces? (AACSB: Communication; Analytic Reas however, a marketer must understand the costs associated 2. If the manufacturer desires a markup of 60 per with producing the product and set the price at some level sales, at what price should this product be sold above those costs. For example, suppose that a manufac seller such as a wholesaler or distributor? ( turer of lawn mowers incurs a cost of $75 for each mower Communication; Analytic Reasoning) it produces and that it produces a total of 1 million mowers each year. Fixed costs for this company are $5 million. Refer to Appendix 2: Marketing by the Numbers to answer the following questions