28 Jun MKTG 368-Clubs are Us, a manufacturer of golf clubs
Question
6. Clubs are Us, a manufacturer of golf clubs, breaks even at 21,256 units. They sell their clubs at $314 per set. The variable cost for each set of clubs is $127.68. What must the company’s fixed cost be?
7. Capacity at Crater Research is 10,000 units. In order to breakeven the company must operate at a 74% capacity. If fixed costs are $300,000, what must the contribution per unit be?
8. YYZ logic earns a contribution margin of 38% on sales of its popular learning aids. If the company is considering lowering the price of this product by 8.5%, what increase in dollar sales will be necessary to match last year’s total contribution of 4.8 million? How much were total sales last year?
9. What increase in unit sales will YYZ Logic need to achieve the same level on contribution?
10. Total sales for QuestStore are $3.2 million and the overall industry sales equal $13.5 million, What is QuestStore’s market share?
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