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A major concern is a lack of funds for marketing. As such, Break-C will only be distributed in major metropolitan areas that account for 65% of U.S. breakfast drink market volume. Print ads will carry a coupon entitling consumers to receive $.20 off the price. Past experience indicates that for every 5 cans sold, 1 coupon will be returned. The cost of print ads (excluding coupons) is $250,000. Calculate the following (show your work): a) What is the contribution per unit for Break-C? b) What is the break-even volume in the first year? c) What is the first-year break-even market share for the market distributed in? d) What unit volume in necessary to achieve $100,000 profit?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91953635

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