IKEA is planning to launch a new mattress product. The mattress will sell for $500. The product cost is $300. Please answer the following questions:

a.    What is IKEA's per unit profit margin for this product in dollars and percentage?

b.   If IKEA were going to spend $1MM to advertise the product, how many units does IKEA need to sell to break even? What do dollar sales need to be to break even?

Answer rating: 100% (QA)

Per Unit Profit and Margin Working Calculate the profit per unit by subtracting the product cost fro... View the full answer