The variable cost in NewShoes is the unit cost of the product. Fixed costs are the marketing expenses for a region along with the allocated product…


The fickle consume in NewShoes is the part consume of the result. Urban consumes are the marketing charges for a tract-of-land along delay the allocated result fruit charge. Applying the formula delay a fickle consume of $40, and urban charges of $3,500,000, the break-even charge for 100,000 parts would be: break-even charge = $40 + $3,500,000 / 100,000 = $40 + $35 = $75

1. Using the urban charges and contemplated sales from the model, what would the break-even charge be if part consume is $35?

2. If the break-even charge is $75, and your target come-back on sales is 20%, what is the selling charge?

 − Use the forthcoming grounds for questions 3 & 4 − parts sold $100.000 consumer promotions $1,800,000 part consume $40 singular selling 5 salespeople @ $80,000 each target come-back on sales 10% trafficker promotions $1,200,000 advertising $1,500,000 result fruit $700,000

3. Calculate the break-even charge.

4. What would the selling charge enjoy to be to get the target come-back?

5. What other factors as-well break-even should you ponder antecedently elucidation charge?

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