A ballpoint pen manufacturer had the following information: Plastic Tubes: top & tip 12 per unit...

 

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A ballpoint pen manufacturer had the following information: Plastic Tubes: top & tip 12 per unit Ink .02 per unit Direct Labour Selling Price .02 per unit .40 per unit $80,000 $200,000 10% of SP $120,000 Advertising Managerial and secretarial salaries Sales personnel commissions Factory Overhead Total available ballpoint pen market is 10 million pens (near this selling price). Calculate: A) Unit Contribution, B) B/E volume in units, C) Share of total market needed to B/E, D) Total profit for the company if three million pens are sold, E) volume in units required to generate $500,000 in profit. A ballpoint pen manufacturer had the following information: Plastic Tubes: top & tip 12 per unit Ink .02 per unit Direct Labour Selling Price .02 per unit .40 per unit $80,000 $200,000 10% of SP $120,000 Advertising Managerial and secretarial salaries Sales personnel commissions Factory Overhead Total available ballpoint pen market is 10 million pens (near this selling price). Calculate: A) Unit Contribution, B) B/E volume in units, C) Share of total market needed to B/E, D) Total profit for the company if three million pens are sold, E) volume in units required to generate $500,000 in profit.

Answer rating: 100% (QA)

A Unit Contribution Unit Contribution Selling Price Plastic Tubes Ink Direct Labour Sales Personnel Commission Unit Contribution 040 012002002010040 Unit Contribution 040 012002002004 Unit Contributio... View the full answer