home / study / business / operations management / operations management questions and answers / company xyz manufactures a product #101 that has a retail price of $2,500. retailers and wholesalers... Your question needs more information to be answered. A Chegg Expert needs more info to provide you with the best answer. See comments below. Question: Company XYZ manufactures a product #101 that has a retail price of $2,500. Retailers and wholesal... Edit question Company XYZ manufactures a product #101 that has a retail price of $2,500. Retailers and wholesalers receive a margin of 40%. Shipping and package costs $50 per unit. Fixed manufacturing costs are $1,250,000. The variable production costs are estimated to be $800 per unit and include direct labor costs and raw materials. The marketing promotion expense equals to 10% of sales. Executive salaries are $250,000 and the company employs two sales representatives at a salary of $50,000 per year. The annual advertising budget is $1,000,000. The company has a 5% market share of a total market of 250,000. What is the break-even for product #101 in units? What is the market share to achieve break-even volume? What are Company XYZs Net marketing contribution, MROI and current profits? The companys owners have invested $5,000,000 and expect a yearly return of 20%. Has the product achieved this goal? The CMO provides research that an investment of $250,000 in advertising will increase sales by 7%? On the other hand, the CFO has proposed that fixed costs are too high and that advertising should be cut by 150,000. As CEO, how would you respond to these two proposals? A sales commission of 5% has been proposed for product #101? How would you respond to this request?