I do not understand question #3

Whiskey and Cheddar: Ingredient Branding at the Casan Cheese Cooperative. Case study.

I am lost on #3 and 4

Individual Case Two Read the "Whiskey and Cheddar: Ingredient Branding at the Caesan Cheese Cooperative" case and answer the following questions: 1. What are the strengths and weaknesses of the proposed marketing program? 2 What are the advantages and disadvantages of the proposed licensing agreement? 3. Calculate a breakeven analysis for both possibilities (the information needed is in Week 5 right under this assigment). 4. Should Kelley recommend the PR-U deal? Give at least three reasons to support your position and three reasons the board might object. Fxhibit 1 Caesan Product Lines by Percentage of Retail Revenue (2018) Exhibit 2 Caesan Consolidated Income Statement (Annual 2018) Exhibit 3 Caesan Cheese Gross Margins per Unit (Annual 2018 and Proposed) Exhibit 4 Results of A/B Test Whiskey Cheddar: Ingredient Branding at the Caesan Cheese Cooperative 1 919-521 Exhibit 5 Summary of Draft Licensing Agreement Caesan Cheese Cooperative (hereafter, "Caesan") receives exclusive licensing rights to utilize the Jameson@ Irish Whiskey trademark in connection with natural cheese it sells in the United States and Canada, as long as the cheese meets or exceeds established quality standards. Caesan will not produce, market, or sell any other version of whiskey cheddar (natural, artisan, farmstead, or variations thereof) for the period of the agreement. Caesan pledges to use its best efforts in marketing Jameson Irish Whiskey Artisan Cheddar. Pernod Ricard USA (hereafter, "PR-U") promises to provide limited support for marketing and communications through its website, media relations, and cooperative advertising. Caesan will pay a royalty of $0.25 to PRU for every unit of Jameson(i) Irish Whiskey Artisan Cheddar sold at wholesale. Jameson(3) Irish Whiskey Artisan Cheddar is required to meet a series of steadily increasing annual net sales targets during the first two years of the agreement. The sales targets must also be met in each subsequent year. The Jameson(3 Irish Whiskey brand name will be displayed prominently on each unit. All advertising and promotional materials for Jameson(i) Irish Whiskey Artisan Cheddar require written approval from PR-U prior to publication or use. PR-U may terminate this agreement during 2020 if, in PR-U's sole judgment, sales of Jameson\& Irish Whiskey Artisan Cheddar adversely impact sales of Jameson\& Irish Whiskey or any derivativ thereof. Exhibit 6 Two-Year Budget for New Product Launch (U.S.\$) Breakeven (in units) is calculated as follows: Total Marketing Costs (Exhibit 6 in the case)/Wholesale Price per unit - marketing costs p unit For example, the cheese without Jameson would be calculated: 1,800,000/4.452.751=? Individual Case Two Read the "Whiskey and Cheddar: Ingredient Branding at the Caesan Cheese Cooperative" case and answer the following questions: 1. What are the strengths and weaknesses of the proposed marketing program? 2 What are the advantages and disadvantages of the proposed licensing agreement? 3. Calculate a breakeven analysis for both possibilities (the information needed is in Week 5 right under this assigment). 4. Should Kelley recommend the PR-U deal? Give at least three reasons to support your position and three reasons the board might object. Fxhibit 1 Caesan Product Lines by Percentage of Retail Revenue (2018) Exhibit 2 Caesan Consolidated Income Statement (Annual 2018) Exhibit 3 Caesan Cheese Gross Margins per Unit (Annual 2018 and Proposed) Exhibit 4 Results of A/B Test Whiskey Cheddar: Ingredient Branding at the Caesan Cheese Cooperative 1 919-521 Exhibit 5 Summary of Draft Licensing Agreement Caesan Cheese Cooperative (hereafter, "Caesan") receives exclusive licensing rights to utilize the Jameson@ Irish Whiskey trademark in connection with natural cheese it sells in the United States and Canada, as long as the cheese meets or exceeds established quality standards. Caesan will not produce, market, or sell any other version of whiskey cheddar (natural, artisan, farmstead, or variations thereof) for the period of the agreement. Caesan pledges to use its best efforts in marketing Jameson Irish Whiskey Artisan Cheddar. Pernod Ricard USA (hereafter, "PR-U") promises to provide limited support for marketing and communications through its website, media relations, and cooperative advertising. Caesan will pay a royalty of $0.25 to PRU for every unit of Jameson(i) Irish Whiskey Artisan Cheddar sold at wholesale. Jameson(3) Irish Whiskey Artisan Cheddar is required to meet a series of steadily increasing annual net sales targets during the first two years of the agreement. The sales targets must also be met in each subsequent year. The Jameson(3 Irish Whiskey brand name will be displayed prominently on each unit. All advertising and promotional materials for Jameson(i) Irish Whiskey Artisan Cheddar require written approval from PR-U prior to publication or use. PR-U may terminate this agreement during 2020 if, in PR-U's sole judgment, sales of Jameson\& Irish Whiskey Artisan Cheddar adversely impact sales of Jameson\& Irish Whiskey or any derivativ thereof. Exhibit 6 Two-Year Budget for New Product Launch (U.S.\$) Breakeven (in units) is calculated as follows: Total Marketing Costs (Exhibit 6 in the case)/Wholesale Price per unit - marketing costs p unit For example, the cheese without Jameson would be calculated: 1,800,000/4.452.751=