Business, 11.02.2021 22:10 Laylahlettiere

One of the first decisions you have to make as the brand manager for Vesuvius is whether or not to add a new line of counter top vegetable steamers, the "Super-Vesuvius line. The line would be marketed in addition to the original Vesuvius line. Your brand assistant has provided you with the following facts. a. Retail selling price$70 per unit
b. All margins the same as before
c. Direct factory labor$3 per unit
d. Raw materials$6 per unit
e. Additional factory and admin. overheads$3.5 per unit
(if unit volume = 50,000)
f. Salesperson's commissions: …………….the same percent as before
g. Incremental sales force travel cost$60,000
h. Advertising for Super Vesuvius$650,000
i. New equipment needed$950,000 (to be depreciated over 10 years)
j. Research and development spent$250,000
up to now
k. Research and development to be$600,000 (to be amortized over 5 years)
spent this year to commercialize
the product

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One of the first decisions you have to make as the brand manager for Vesuvius is whether or not to a...

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