Business, 18.01.2021 14:00 yunilka28

You are the product manager for Vita-Joy, a consumer product with a retail price of $1.00. Retail margins on the product are 33%, while wholesalers take a 12% margin. Using the indicated supply chain, fill in the yellow boxes with dollar amounts. (Hint: Variable costs at one link of the chain become the price at a previous link in the chain. Begin your Vita-Joy calculations with the customer and move backwards; do not start with the company and move forward). Variable manufacturing costs for Vita-Joy are $0.09 per unit. Fixed manufacturing costs are $900,000. The advertising budget for Vita-Joy is $500,000. Your salary and expenses total $35,000. Salespeople are paid entirely by a 10% commission. Shipping costs, breakage, insurance, and so forth are $0.02 per unit.
Now answer the following:.
1. By filling in the yellow and green boxes, determine the contribution per unit for Vita-Joy.
2. What is Vita-Joy's breakeven point?

Answers: 2

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You are the product manager for Vita-Joy, a consumer product with a retail price of $1.00. Retail ma...

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