Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Rosenberg Manufacturing Corp. is considering marketing their new hearing aid in the city of "Big Smoke". This device is targeted at the hearing impaired over the age of 60 years. As she considers the possibility, the VP/Marketing reviews the following data for FY 2013:

Retail price : $499
Retail margin : 45%
Wholesale margin : 25%
R & D on hearing aid, FY's 2011, 2012 : $179,000
Introductory promotional outlays, 2013 : $199,000
Manufacturing costs/unit : $89
Rosenberg's sales commission : 6% of manufacturer's selling price
Population of Big Smoke" : 2,500,000
Proportion of population over 60 : 15%

How many units must Rosenberg sell in the first year to break even? Carefully describe,

a) How many units must Rosenberg sell in the first year to break even? Carefully describe, including any assumptions that you make

b) If 25% of the "over 60" population is hearing impaired, what is Rosenberg's break even market share in 2013? (Identify and describe any assumption(s) that are necessary).

c) If Rosenberg has four competitors in the market, assess Rosenberg's prospects of breaking even in the first year. Incorporate the market share from (b) above into your assessment. Carefully describe your reasoning.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M947808

Have any Question? 


Related Questions in Accounting Basics

Accounting principles assignment-q1 smith catering service

Accounting Principles Assignment- Q1. Smith Catering Service completed the following transactions during its first month of operations for July 2016: a. Smith Catering Service commenced operations by receiving $12000 cas ...

Calculate and provide an interpretation of the financial

Calculate and provide an interpretation of the financial results of an organisation listed on the FTSE 100 using ratio analysis. Assignment Task: Choose two of the UK'S Top three Telecoms companies from the list provided ...

Primary task response within the discussion board area

Primary Task Response: Within the Discussion Board area, write 300-400 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your cla ...

During the third year of operations big alrsquos estimates

During the third year of operations, Big Al’s estimates that 415,000 pizzas (385,000 meat and 30,000 veggie) will be produced. Direct material costs per unit are $.74 per meat pizza and $.62 per veggie pizza. Direct labo ...

Assignment discussion-ethical issuesreview the ethical

Assignment: Discussion-Ethical Issues Review the Ethical Issue: Dobbs Wholesale Antiques in chapter 5 (Page 317). address the following in your initial post: 1. Under Dobbs FOB policy, when should the company record a sa ...

Q1- chart of accountsinnerscape interiors is owned and

Q1- Chart of accounts Innerscape Interiors is owned and operated by Jackie Vargo, an interior decorator. In the ledger of Innerscape Interiors, the first digit of the account number indicates its major account classifica ...

The project -this project gives a companys starting balance

The project - This project gives a company's starting balance sheet, and lists 18 transactions. Center Company January 1, 2017, Balance Sheet Cash 800,000 Accounts receivable 700,000 Less: Allowance for doubtful accounts ...

Practice questionsthink of a business that you would like

Practice questions: Think of a business that you would like to start. Draw up a list of all the expenses the business would incur and indicate the source of the information you would need to calculate the figures for the ...

Practice questionsexplain the importance of the assumptions

Practice questions: Explain the importance of the assumptions used by accountants. and describe any four.

A company purchased and installed equipment on january 1 at

A company purchased and installed equipment on January 1 at a total cost of $72,000. Straight-line depreciation was calculated based on the assumption of a five-year life and no salvage value. The equipment was disposed ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate