Question: A consumer purchases a computer for $600 from a retailer. If the retailer's markup is 30 percent and the wholesaler's markup is 10 percent, both

A consumer purchases a computer for $600 from a retailer. If the retailer's markup is 30 percent and the wholesaler's markup is 10 percent, both based on their respective selling prices, for what

price does the manufacturer sell the product to the wholesaler?

$378

QUESTION 2

With reference to the question right above, if the unit variable cost for each computer is $120 and the manufacturer has fixed costs totaling $2 million, how many computers must this manufacturer

sell to break even (Note: the number of computers has been rounded up to the next whole number)?

O 16,6667 computers

question3

If the manufacturer were to make a profit of 40 million, how

many computers must this manufacturer sell to break even

(Note: the number of computers has been rounded up to

the next whole

number)?

0 201,551 computers

0 162,791 computers

0 118,182 computers

QUESTION 4

If each sales representative earns a salary of $48,000, what

sales are necessary to break-even on the sales force costs

if the company has a contribution margin of 40 percent?

0 $9,600,000

0 $7.200.000

O S4.800.000

QUESTION 5

What effect will adding each additional sales representative

have on the break-even sales? In other words, what will be

the increase in sales necessary to break-even on each

additional sales

representative?

O $200

O $19,200

O $120.000

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