MKT 210 Application Assignment 2 - Word e Srunch Layout References Mailings Review View Help ht - A AR-A EEEE LT | X A-D A-E 1 Normal 1 No Spac... Heading 1 Heading 2 Title Paragraph Styles Happy Days Dairy is a producer of high-quality organic yogurt, sour cream and creme fraiche. They are considering marketing a new line of drinkable yogurt for children. The new yogurt will be offered in packages of six 6-ounce individual containers and it will be available in four flavors. The company plans to use TV and newspaper advertising to promote the new product. Distribution will be through major supermarket chains which currently have over 90 percent of the U.S. yogurt market. The suggested retail price for each 6-ounce individual container will be $0.60. Because the retailer requires a 30 percent markup on price, Happy Days' price to the supermarkets will be $0.42 per six- ounce container. Variable cost per unit for the product including packaging will be $0.15. The company estimates its advertising and promotion expenses for the first year will be $1,500,000. It does not need to spend any additional money on equipment as it uses excess capacity of their own plant (so they do not need to recover cost of equipment). 2. What is the contribution per unit for the new children's yogurt product (fixed cost contribution)? What is the break-even quantity (number of units) for the first year that will cover the planned advertising and promotion? The break-even in dollars? c. How many units of the yogurt must Happy Days sell to earn a profit of $800,000? brocul o