A new company is planning to make and sell new cheap smart phones in America. They...

  

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A new company is planning to make and sell new cheap smart phones in America. They will sell the phone at $99.99 in a market that potentially buys 1 million smart phones every year. They hope to get 1% of the market share in the first year. To achieve that goal they estimate to spend 17% on promotion and 12% on commission to motivate the salespepople. They estimate to pay $100000 salary and $50000 in annual rent. There are some other costs that are about $2000 monthly. The cost of goods is about 20%. Hint: Net Income Revenue - Total Cost Revenue Market share* market size*Price 1 How much is the annual net income if they achieve their 1% goal? 2 What percent of the market share they have to get in order to make $1,700,000 of net income? Two decimals (Hint: use goal seek) Retail Cost Wholesalers Retails manufactured Manfctr Cost $99.99 Questions Jolt Inc. plans to introduce a new single-cup coffee brewing system to small offices throughout the United States. The Jolt system is proprietary: only Jolt coffee, packaged as J-Cups, will work with a Jolt brewer. The manufacturing cost per brewer is $105 and that of a J-Cup is 15 cents. The investment on production equipment for the cups costs about $340,000 and that for the packaging line is $72,000. The company plans to sell a starter system that consists of a brewer and 150 J-cups to offices via distributors who take a 22% markup on price for the brewer and 40% markup on J- cups. The distributors will autoship J-cups to replenish supplies. The list price to offices is $220 a brewer and 63 cents per cup. 1 The selling price of a starter system to offices is $ 2 The selling price of a starter system to distributors is $ 3 Unit brewer contribution to Jolt Inc. is $ 4 Unit J-cup contibution to Jolt Inc. is $ 5 Unit contribution of a starter system to Jolt Inc. is $ 6 Number of systems required for break-even is 7 Assuming that an office charges the employees a 50% markup on retail, the price to employees for each cup of coffee brewed from a J- cup is ? Manel Inc. will introduce its new natural air freshener, Bayer, next year. It is estimated that Bayer will capture 10% percent of the 30 million unit market. Bayer's retail price is $9.50. Manufacturing costs for Bayer include $0.75 for material and $0.25 for labor per unit. overhead costs are expected to be $1,390,000 per year. Brand manager's salary and expenses total $114,000. Salespeople are paid entirely by a 11.5 percent commission. Shipping costs, breakage, insurance, and so forth are $0.19 per unit. The advertising budget for Bayer is $2,960,000. While wholesalers take a 11 percent markup on price, retailers will receive a margin of 27 percent. Please answer the following questions: 1 At what price will the company be selling its product Bayer? 2 What is the contribution per unit for Bayer? 3 What is the break-even unit volume in the first year? 4 What is the first-year break-even share of market? 5 What is the markup% on price for Bayer? 6 What is the markup % on cost for the wholesaler? A new company is planning to make and sell new cheap smart phones in America. They will sell the phone at $99.99 in a market that potentially buys 1 million smart phones every year. They hope to get 1% of the market share in the first year. To achieve that goal they estimate to spend 17% on promotion and 12% on commission to motivate the salespepople. They estimate to pay $100000 salary and $50000 in annual rent. There are some other costs that are about $2000 monthly. The cost of goods is about 20%. Hint: Net Income Revenue - Total Cost Revenue Market share* market size*Price 1 How much is the annual net income if they achieve their 1% goal? 2 What percent of the market share they have to get in order to make $1,700,000 of net income? Two decimals (Hint: use goal seek) Retail Cost Wholesalers Retails manufactured Manfctr Cost $99.99 Questions Jolt Inc. plans to introduce a new single-cup coffee brewing system to small offices throughout the United States. The Jolt system is proprietary: only Jolt coffee, packaged as J-Cups, will work with a Jolt brewer. The manufacturing cost per brewer is $105 and that of a J-Cup is 15 cents. The investment on production equipment for the cups costs about $340,000 and that for the packaging line is $72,000. The company plans to sell a starter system that consists of a brewer and 150 J-cups to offices via distributors who take a 22% markup on price for the brewer and 40% markup on J- cups. The distributors will autoship J-cups to replenish supplies. The list price to offices is $220 a brewer and 63 cents per cup. 1 The selling price of a starter system to offices is $ 2 The selling price of a starter system to distributors is $ 3 Unit brewer contribution to Jolt Inc. is $ 4 Unit J-cup contibution to Jolt Inc. is $ 5 Unit contribution of a starter system to Jolt Inc. is $ 6 Number of systems required for break-even is 7 Assuming that an office charges the employees a 50% markup on retail, the price to employees for each cup of coffee brewed from a J- cup is ? Manel Inc. will introduce its new natural air freshener, Bayer, next year. It is estimated that Bayer will capture 10% percent of the 30 million unit market. Bayer's retail price is $9.50. Manufacturing costs for Bayer include $0.75 for material and $0.25 for labor per unit. overhead costs are expected to be $1,390,000 per year. Brand manager's salary and expenses total $114,000. Salespeople are paid entirely by a 11.5 percent commission. Shipping costs, breakage, insurance, and so forth are $0.19 per unit. The advertising budget for Bayer is $2,960,000. While wholesalers take a 11 percent markup on price, retailers will receive a margin of 27 percent. Please answer the following questions: 1 At what price will the company be selling its product Bayer? 2 What is the contribution per unit for Bayer? 3 What is the break-even unit volume in the first year? 4 What is the first-year break-even share of market? 5 What is the markup% on price for Bayer? 6 What is the markup % on cost for the wholesaler?

Answer rating: 100% (QA)

A 1 Annual Net Income for 1 Market Share Revenue Market share Market size Price Revenue 001 1000000 9999 Revenue 99990 Total Costs Promotion cost 17 Revenue 017 99990 Commission cost 12 Revenue 012 99... View the full answer