Units sold $100.000 consumer promotions $1,800,000 unit cost $40 personal selling 5 salespeople @ $80,000 each target return on sales 10% dealer promotions $1,200,000 advertising $1,500,000 product development $700,000
1. Calculate the break-even price.
2. What would the selling price have to be to get the target return?
3. What other factors besides break-even should you consider before setting price?