Question: Dans Data Storage (DDS) is located in Calgary, AB and holds 6.17% share of the total annual market of 62,743 solid state backup storage devices.
Dans Data Storage (DDS) is located in Calgary, AB and holds 6.17% share of the total annual market of 62,743 solid state backup storage devices. DDS provides its retailers with a margin of 37% on the retail price. The Retail price is $2153.00 per storage device. Brenda Smith, DDSs controller estimates that the production variable costs are $813.18 per storage unit and Fixed Production costs are $357,000 per year. In addition, shipping and packing costs of $59.12 per unit paid by DDS. Management costs are $181,000 per year, annual advertising budget is $115,325 and the company has one sales person with a salary of $93,750 (no commission percentage)
1. What is the Breakeven volume in units (3 marks)? Round to nearest whole number
2. What is the market share needed to achieve Break Even volume (3 marks)
3. What is the current profit/loss in Dollars and Percentage (4 marks)
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