Zenith Pet Food

659 Words3 Pages
Assume that skin-tique corporation at a retail price of $ 3.95 per 5 1/2 ounce tube. Retail price $3.95 Wholesaler commission (40%) 1.58 Wholesaler price 2.37 Broker`s commission 0.474 Manufacturing price 1.896 Variable cost 0.4 Contribution margin per 5 1/2 ounce 1.496 Contribution margin per ounce 0.272 Assume that skin-tique corporation at a retail price of $ 4.25 per 10 ounce aerosol can. Retail price $4.25 Wholesaler commission (40%) 1.7 Wholesaler price 2.55 Broker`s commission(20%) 0.51 Manufacturing price 2.04 Variable cost 0.29 Contribution margin per 10 ounce 1.75 Contribution margin per ounce 0.175 Assume that skin-tique corporation at a retail price of $ 3.95 per 5 1/2 ounce aerosol can. Retail price $3.50 Wholesaler commission (40%) 1.4 Wholesaler price 2.1 Broker`s commission 0.42 Manufacturing price 1.68 Variable cost 0.24 Contribution margin per 5 1/2 ounce 1.44 Contribution margin per ounce 0.26 Assume that Zenith elects to position Show Circuit against brands of wet dog foods at a retail price of $1.29 per tub? a) What is the contribution per case? Ans: $ 4.86 b) At an introductory fixed cost of $630,000, how many cases would be required to break-even? Ans: 129,630 cases Break-even in units = F.C. /C.M.U. =630,000/4.86 =129,630cases Break-even in dollar = $2,006,369 c) What is the break-even share of the Boston supermarket wet segment? Ans: 39% Market share to break even in Boston market = 2,006,369/5,140,800 = 39% d) Do you think Zenith can achieve this share? Ans: - Yes Problem: - 03 Do you think supermarkets are good channel to reach Zenith`s target audience? Ans: - Yes,

More about Zenith Pet Food

Open Document