Like many companies, Walker & Company started with asole product, The Bevel Trimmer. Below is some of
Question:
Like many companies, Walker & Company started with asole product, “The Bevel Trimmer”. Below is some of Walker &Company’s financial information during that initial time period.Use this information to answer the corresponding questions. Showyour calculations/math.
Equipment and Technology: $2,000,000
Marketing: $3,000,000
Research and Development: $2,000,000
Cost of materials per trimmer: $3
Salaries: $3,000,000
Cost of packaging per trimmer: $2
a)If the selling price per trimmer was $55, what is thecompany’s contribution margin for the trimmer?
b)If the selling price per trimmer was $55, what is the breakevenpoint in units (volume)?
c)Based on the given information (including $55 selling price), ifthe company wanted to earn a profit of $2 million instead ofbreaking even, what is the number of units the company mustsell?
d)If the company wanted to charge a selling price at a $20 markup,how much would they charge (Assume 500,000 units)?
e)If the company simply wanted to charge a 20% markup how muchwould they charge? (Assume 500,000 units).
Expert Answer:
Fixed cost Equipment and Technology 2000000 Marketing 3000000 Research and Development 2000000 Salar... View the full answer
