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Question 23 (8 points) Foods Inc (Fl) sells 4 million units per year of its only product (SuperFood) through a major retailer. SuperFoods retail price is $12 per unit which included a margin to the retailer of 20%. SuperFoods' manufacturing cost is $6 per unit. In order to promote sales, Fl pays a sales broker 8% of the retail price of each unit sold. FI spends $6,600,000 per year in fixed costs (.e. advertising, administrative costs and rent of the production facility), What is SuperFoods's Break Even Volume? 2,000,000 units 2,500,000 units 6,500,000 units 750,000 units Question 24 (7 points) Foods Inc (FI) sells 4 million units per year of its only product (SuperFood) through a major retailer. SuperFoods retail price is $12 per unit which included a margin to the retailer of 20%. Superfoods' manufacturing cost is $6 per unit. In order to promote sales, Fl pays a sales broker 8% of the retail price of each unit sold. FI spends 56,600,000 per year in fixed costs (i.e. advertising, administrative costs and rent of the production facility). Comparing the Break-even volume (BEV) with the actual sales of SuperFood. Is FI making a protit? No, actual sales volume is greater than BEV Yes, BEV is greater than actual sales volume Yes, actual sales volume is greater than BEV No, BEV is greater than actual sales volume Question 25 (10 points) Good4U Bars Inc. is interested in introducing a new organic energy bar to the market. Their market research tells them that MSU students would be willing to pay $15 for a box of 10 energy bars. They also know that in order to sell the product through a local retail store (e.g. Goodrich's), they will have to distribute the product through a wholesaler (e.g. Spartan Stores). The wholesaler charges a markup of 10% on all new-to- market items. The local retail store collects a margin of 20% on all sales. What is the maximum price (ie, manufacturer's price) that Good4U Bars Inc. can sell their new energy bars for? $12.00 $15.25 $12.49 $10.91