Financial Analysis for Zig Brand
Not what you're looking for?
As the Marketing Manager for the Zig brand of microwave ovens in a large consumer products company you must answer the questions found below with the following financial information regarding your product.
Total market for Microwave Ovens 5 million units
Current yearly sales of Zig brand 750,000 units
Direct factory labor $13.20 per unit (VC)
Raw materials $50 per unit (VC)
Salesperson's Commissions 10% of Manufactures Selling Price (VC)
All factory and administrative overheads $2,000,000 (FC)
Retail selling price $300 per unit
Retailers margin 20%
Jobber's margin 20%
Wholesaler's margin 15%
Sales travel expenses $800,000 (FC)
Advertising $3 million (FC)
Distribution channel is Manufacturer  Wholesaler  Jobber  Retailer
Questions
1. The selling price for the manufacturer is $163.20. Show how this selling price is determined based on the margins provided.
Answer: ______________
2. Using this selling price, what is the contribution per unit for the Zig brand?
Answer: ______________
3. What is the break even volume in units and in dollars?
Answer: ______________
4. What market share does the Zig brand need to break even?
Answer: _____________
5. What is the current total contribution?
Answer: ______________
6. What is the current before tax profit of the Zig brand'?
Answer: _____________
7. What market share must Zig obtain to contribute a before tax profit of $100 million?
Answer: _____________
Purchase this Solution
Solution Summary
The solution performs Financial Analysis for Zig Brand.
Purchase this Solution
Free BrainMass Quizzes
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.