D Question 2 10 pts Given the above information in Q1, Shannon's wants to increase its...

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D Question 2 10 pts Given the above information in Q1, Shannon's wants to increase its sales to retailers by 20% in the next year. Management estimates that the incremental promotion program required to generate sufficient demand to boost sales by 20% will be: Personal Selling Costs $ 60,000 (exclusive of commission) Consumer Advertising $ 61,492 Trade Promotion $ 44,804 Sales Promotion $ 25,000 Shannon's will need to hire an additional salesperson (paid a salary and commission) and provide some added administrative support. The salesperson's salary plus administrative support will cost about $60,000 per year. The salesperson's commission will be the equivalent of $0.05 per six-pack sold. Unit variable costs, exclusive of the salesperson's commission, are the same as in Q1. The incremental costs of consumer advertising, trade promotion, and sales promotion necessary to support sales in the new market will be substantial, as indicated in the table above. How many six- packs must be sold to break even on the incremental costs that are anticipated? Shannon's distributes its beer through a wholesaler, Miller of Denton. The retail selling price for a six pack of its typical craft beer is $12.00. The retailer's cost per six pack is $8.00. The wholesaler sells the beer to the retailer for this price. Shannon's sells a six pack to the wholesaler for $5.40. Shannon's variable costs of production, packaging, and distribution are $3.60 per six pack. Shannon's has the following annual fixed operating and marketing costs: Marketing Costs $55,605 Consumer Advertising $33,930 Trade Promotion $30,000 Sales Promotion $18,000 What is Shannon's annual break-even in six packs of beer sold? 76,408.3 D Question 2 10 pts Given the above information in Q1, Shannon's wants to increase its sales to retailers by 20% in the next year. Management estimates that the incremental promotion program required to generate sufficient demand to boost sales by 20% will be: Personal Selling Costs $ 60,000 (exclusive of commission) Consumer Advertising $ 61,492 Trade Promotion $ 44,804 Sales Promotion $ 25,000 Shannon's will need to hire an additional salesperson (paid a salary and commission) and provide some added administrative support. The salesperson's salary plus administrative support will cost about $60,000 per year. The salesperson's commission will be the equivalent of $0.05 per six-pack sold. Unit variable costs, exclusive of the salesperson's commission, are the same as in Q1. The incremental costs of consumer advertising, trade promotion, and sales promotion necessary to support sales in the new market will be substantial, as indicated in the table above. How many six- packs must be sold to break even on the incremental costs that are anticipated? Shannon's distributes its beer through a wholesaler, Miller of Denton. The retail selling price for a six pack of its typical craft beer is $12.00. The retailer's cost per six pack is $8.00. The wholesaler sells the beer to the retailer for this price. Shannon's sells a six pack to the wholesaler for $5.40. Shannon's variable costs of production, packaging, and distribution are $3.60 per six pack. Shannon's has the following annual fixed operating and marketing costs: Marketing Costs $55,605 Consumer Advertising $33,930 Trade Promotion $30,000 Sales Promotion $18,000 What is Shannon's annual break-even in six packs of beer sold? 76,408.3