Question: Break Even Point = Fixed Costs/Contribution Per Unit Contribution Per Unit = Price - Variable Cost (Per Unit) Markup = Unit Price/(1-Desired Return on Sales)

Break Even Point = Fixed Costs/Contribution Per
Break Even Point = Fixed Costs/Contribution Per Unit Contribution Per Unit = Price - Variable Cost (Per Unit) Markup = Unit Price/(1-Desired Return on Sales) Media Planning Budget = Reach x Frequency x Cost/1000 Target Return Price = (VC + (FC/Expected Units) PLEASE SHOW YOUR WORK. 1. Suppose a media planner had a budget of $5,000,000 and the cost per thousand exposures was $10. The planner wanted a frequency of 20. The planner could attain a reach of 2. Bose will incur fixed costs of $200,000 and unit variable costs of $25 on its new wireless Bluetooth shower speaker. Bose plans to price the speaker at $750. To break-even, Bose must sell units. 3. A watch manufacturer incurs a variable cost of $10 per watch and fixed costs of $500,000. To earn a 20 percent markup on selling price, the manufacturer would charge for each of the 50,000 watches it expects to sell. Break Even Point = Fixed Costs/Contribution Per Unit Contribution Per Unit = Price - Variable Cost (Per Unit) Markup = Unit Price/(1-Desired Return on Sales) Media Planning Budget = Reach x Frequency x Cost/1000 Target Return Price = (VC + (FC/Expected Units) PLEASE SHOW YOUR WORK. 1. Suppose a media planner had a budget of $5,000,000 and the cost per thousand exposures was $10. The planner wanted a frequency of 20. The planner could attain a reach of 2. Bose will incur fixed costs of $200,000 and unit variable costs of $25 on its new wireless Bluetooth shower speaker. Bose plans to price the speaker at $750. To break-even, Bose must sell units. 3. A watch manufacturer incurs a variable cost of $10 per watch and fixed costs of $500,000. To earn a 20 percent markup on selling price, the manufacturer would charge for each of the 50,000 watches it expects to sell

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