Detail clarification + formula

12 . | 13 . | . 14 . | . 15 . 1 16 NOSHU is keen to innovate and trial new products or services. You and your team have decided to identify some potential opportunities in relation to product planning and innovation, in both the short and long term. Short Term NOSHU has had some success with their Snackles snack bar range - Double Chocolate, Unicorn Sprinkles and Marshy Mellow. To increase trial across the range, as well as to provide variety, so the consumer doesn't get bored, they re looking to launch a multipack, with 2 of each flavour in the pack, in IGA, as a trial for 6 months. Variable costs: Ingredients $2.25/unit Packaging 40/unit Direct Labour .20/unit Fixed costs: Manufacturing costs $5,000 Administration costs $2,000 IGA is planning a markup of 25% (of their retail selling price) for the product. (note: please carefully read the discussion on mark-ups in your reading) If NOSHU would like the Snackles Multipack to sell at retail for $7.00 (consistent with their in- store price), determine the following metrics: (Note: please show all formulas and calculations in an appendix) 1. What will NOSHU's selling price for the Snackles Multipack have to be, assuming the above stated markup for the retailer? 2. How many units will NOSHU need to sell to break even? 3. How many units will NOSHU need to sell to IGA to earn a target profit of $20,000