A Company wants to introduce new mobile phone into the market. The estimated price of each mobile phone is RO 800. The company requires a profit margin of 15% on sales. Calculate a target cost for the new mobile phone.
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A Company wants to introduce new mobile phone into the market. The estimated price of each mobile phone is RO 800. The company requires a profit margin of 15% on sales.
Calculate a target cost for the new mobile phone.
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- Super Electronics wants to introduce a new model of smart TV into the market. The estimated price of each smart TV is RO 300. The required profit margin is 20% of sales. The target cost for the new smart TV is: a. RO 360 b. RO 240 c. RO 260 d. RO 340Success Electronics LLC is planning to introduce a low cost smart phone with attractive features. The market research information suggests that the product should sell 2000 units at RO 30 per unit. The company seeks to make a mark-up of 20% product cost. It is estimated that the lifetime costs of the product will be as follows: Design and development costs RO 5000 Manufacturing costs RO 22 per unit End of life costs RO 7000 What is the desired profit per unit? a. RO 6 per unit b. RO 10 per unit c. RO 5 per unit d. RO 15 per unitSuccess Electronics LLC is planning to introduce a low cost smart phone with attractive features. The market research information suggests that the product should sell 2000 units at RO 30 per unit. The company seeks to make a mark-up of 20% product cost. It is estimated that the lifetime costs of the product will be as follows: Design and development costs RO 5000 Manufacturing costs RO 22 per unit End of life costs RO 7000 What is target cost per unit to achieve the desired profit? a. RO 24 per unit b. RO 25 per unit c. RO 22 per unit d. RO 20 per unit
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- Success Electronics LLC is planning to introduce a low cost smart phone with attractive features. The market research information suggests that the product should sell 2000 units at RO 30 per unit. The company seeks to make a mark-up of 20% product cost. It is estimated that the lifetime costs of the product will be as follows: Design and development costs RO 5000 Manufacturing costs RO 22 per unit End of life costs RO 7000 What is the original lifecycle cost per unit and is the product worth making on that basis? a. RO 23 per unit; The product is worth making b. RO 28 per unit; The product is not worth making c. RO 24 per unit; The product is worth making d. RO 29 per unit; The product is not worth making1. Your new company is planning to make and sell customized mailboxes. You have set startup costs of $2046. Each mailbox costs you $34 to make. If you plan to sell your mailboxes for $49.50, how many must you make and sell to break even? Explain the how you determined the answer. 2. If the retail price is fixed at $1.00, what effect does increasing the retail and wholesale margins have on the manufacturer's selling price? Explain why this is the case. 3. Define unit contribution in your own words. Is a high or low unit contribution preferable for profitability? 4. How do increases in the retail and wholesale margins (again, with a fixed retail price) affect the unit contribution? Why? 5. If you increase any of the fixed cost factors, what happens to the number of units the company needs to sell to break even? To the market share necessary to achieve breakeven?. 6. What change (increase or decrease) to the following factors increases the profit impact? Decreasing retail margin/unit…Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and website construction is estimated to be $160,000. Variable processing costs are estimated to be $6.00 per book. The publisher plans to sell single-user access to the book for $46. a. Build a spreadsheet model to calculate the profit/loss for a given demand. For example, what profit can be anticipated with a demand of 3500 copies? b. Use a data table to very demand from 1000 to 6000 in increments of 200 to assess the sensitivity of profit to demand. c. Use Goal Seek to determine the access price per copy that the publisher must charge to break even with the demand of 3500 copies. Before you move on to Problem 2, make sure you save your workbook with this value displayed or else you will not receive credit.
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