Question: Complete the Product Analysis below in the two boxes assuming Jake only sells either Product #1 (Launch-its) OR Product #2 (Treat -times). Check figures: B/E
Complete the Product Analysis below in the two boxes assuming Jake only sells either Product #1 (Launch-its) OR Product #2 (Treat -times).
Check figures: B/E Product #1 = 250 units; B/E Product #2= 125 units
| ASSUMPTIONS | |
| Product #1: | Launch-it |
| Sales price per unit | $10.00 |
| Variable costs per unit: | |
| cost per product | $1.00 |
| Shipping per product | $2.00 |
| Commision (10% of revenue) | $1.00 |
| Total variable cost per unit | $4.00 |
| Monthly volume | 200 |
| Product #2: | Treat-time |
| Sales price per unit | $30.00 |
| Variable costs per unit: | |
| Cost per product | $7.00 |
| Shipping per product | $8.00 |
| Commision (10% of revenue) | $3.00 |
| Total variable cost per unit | $18.00 |
| Monthly volume | 100 |
| Fixed costs per month: | |
| work contract | $1,000.00 |
| trade show entry fees | $500.00 |
| Total fixed costs per month | $1,500.00 |
| Target profit per month | 8,000 |
| Expected change in volume (%) | 5% |
| Product #1 | Launch-it |
| Unit CM | |
| CM % | |
| Breakeven point: | |
| -in units | |
| -in sales revenue | |
| Target profit volume: | |
| -in units | |
| -in sales revenue | |
| Product #2 | Treat-time |
| Unit CM | |
| CM % | |
| Breakeven point: | |
| -in units | |
| -in sales revenue | |
| Target profit volume: | |
| -in units | |
| -in sales revenue |
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