REVISE ASSIGNMENT AND ASNWER CORRECTLY

BELOW IS THE TURNED-IN ASSIGNMENT AND THE FEEDBACK LEFT BY INSTRUCTOR

INSTRUCTOR FEEDBACK: 1. is $6 too high 3. Unit contribution is higher than the manufacturer sellilng price 4. breakeven too low due to contribution too high 5. same as issue with #4 6. $5 too high 7. whole sale is too high, retail is off due to wholesale

Formulas to consider: Retail Selling Price = Retail Margin Amount / Retail Margin \% Retail Margin Amount = Retail Selling Price * Retail Margin \% Wholesale Selling Price = Wholesale Margin Amount / Wholesale Margin \% Wholesale Margin Amount = Wholesale Selling Price * Wholesale Margin \% Wholesale Selling Price = Manufacturing Price (1 Wholesale Margin \%) Markup Calculations Purchase Price * (1+Markup Percentage) Remember that a retail or wholesale price calculated using margin approach does not equal a retail or wholesale price under the markup method. 1. Calculate the wholesale price 2. Calculate the retail selling price 3. Calculate the unit contribution 4. Calculate the Breakeven in unit volume 5. Calculate the Breakeven in market share 6. Using The retailer would like to have a 50% markup. What would their new price be? 7. If the wholesaler wanted a 25% markup, what would the new wholesale price be and what would the new retail price be? l Inform ation Manufa cturer Selling Price Retail Margin Wholes ale 25% margin Market size 25000 units Unitvolume8000units volume Variabl e costs (per unit) Manufa cturing Shippin Sales commis sion Fixed Costs Manufa cturing $500,000 Adverti sing $65,000 Manage r salary 1. Wholesale $206.25 2. Retail $275.00 3. Unit Contribution $223.50 4. Breakeven in unit value 2729.35444 5. Breakeven in market value 7. whole sale price with markup new retail price 11% $200.75 $267.66 6. Retail selling price $309.37