I need help in the attached type of questions.
Kindly provide calculations to clarify.
Sony's selling price (to its wholesalers) on a 42" television = $600.
Sony's wholesalers in this channel set their wholesale price such that they receive a Gross Margin of 20% on Sony 42" televisions.
Sony's retail dealers in this channel set their retail price such that they receive a Gross Margin of 15% on Sony 42" televisions.
(1) The retail price at which a Sony 42" television is sold in this channel. $_______
(2) The $ Gross Margin per unit received by the retail dealers in this channel.
(3) The $ Gross Margin per unit received by the wholesalers in this channel.
(4) The Total Revenue per unit Sony receives in this channel.
The following information is provided about Columbia Enterprises (CE). Data from CE's last fiscal year include:
Fixed Costs = $2 million
Price = $ 6.00
Unit Sales = 930,000 units
Variable Costs per unit = $ 3.00
1. What were CE's dollar sales in the last fiscal year? $_________________
2. What was CE's net profit in the last fiscal year? $_________________
3. What was CE's Breakeven Point in units? __________________ units
CE plans to change its marketing tactics for the upcoming year. These will increase Fixed Costs to a total of $2.5 million and will increase Variable Costs per unit by 15%.
1. What will CE's Breakeven Point in units be if price is held constant?
2. In order to achieve the same profit as the last fiscal year, what is the estimated quantity that will be required, given these costs?
This provides examples of calculating net profit, breakeven point, total revenue per unit, and gross margin per unit.