Financial/Analytical Question #1 (FAQ#1): note that there are conceptual issues in each of the 3 Financial/Analytical Assignments. You should specifically identify any assumptions that you make and justify the decision(s) made.

1.The Miyazaki Balderdash Company has two brands (A & B). Price and cost data for each are presented below. A B Unit price $3.75 $4.35 Unit variable cost $2.15 $2.05 Unit volume/year 755,000 units 1,225,000 units Annual Promotional expense $625,000 $675,000 a)Calculate the unit contribution ($) and contribution margin (%) for each brand at the unit level. b)Given a 15% price cut, estimate the breakeven elasticity of each brand. c)What are the respective brand contributions of A and B to the Miyazaki Company? If Miyazaki Company wishes to retain only one of these brands which one would you recommend for retention? Explain your reasoning and state your assumptions! i)A ii)B d)It has been proposed that the price of each brand be reduced by 15% from the original level. Unit variable costs are unchanged. What would be the new unit contribution ($) and unit contribution margin (%) for each brand assuming no change in unit variable costs? A "B