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Contribution valuation reserve per Unit (Based on Averages Given in write of Ex 4) foremost stratum Margin manufacturing business Selling expense per apparel $17.87 Less Cost of Goods change $10.82 $7.05 Less tidy sum Promotion $0.89 $6.16 (5% of MSP) Less: Ad Allowance (Co-Op Adv) $0.36 (10% of MSP, 20% characterize -.20 X .10 X $17.87) world-class class Margin per apparel $5.80 2nd grade Margin 1st stratum Margin per Shirt $5.80 Less royal house Payments $0.83 (5% of MSP -- .05 X $17.87) $4.96 2- social class Break-even withdraw margin is average. of 1st and 2nd year margins $5.80 + $4.91 = $10.71 / 2 = $5.36 $2,810,000 / $5.36 = 530,000 Shirts Year 1 Breakeven $1,455,000 / $5.80 = 250,862 Shirts Year 2 Breakeven $1,355,000 / $4.91 = 276,000 Shirts Simplest bode $2,810,000 / $4.96 = 566,000 Shirts 2 Year Forecast -- lead Analysis organize Audience 100,000,000 (ad campaign target of 15 and everywhere) consciousness 25%, assume to be even over 2 geezerhood 25% / 2 = 12.5% 12,500,000 100,000,000 X .125 Interested in production Category 185/railyard based on survey screening 2,312,500 185/ guanine = .185 X 12,500,000 Trial grease ones palms 1 shirt sour 60% of Definitely would deprave(38%) [.38 x .60 = .228] .

228 X 2,312,500 527,250 Adopters Repeat Purchase 50% of 1st year buyers will repeat buy in year 2 527,250 / 2 = 263,625 x 50% 131,813 Total Estimated Demand over 2-Year Period 659,063 Fixed be of 2-Year Marketing Program 2- eld 1st Year 2nd Year Retail Displays $1,000,000 $500,000 $500,000 (10,000 x $100) Advertising $1,200,000 $600,000 $ 600,000 Additional Salespeople $510,000 $25! 5,000 $255,000 (3 for 2 years @ $85,000) Licensing Fee $100,000 $100,000 0 Fixed for 1st year scarcely Totals $2,810,000 $1,455,000 $1,355,000 1. Assume budget items will be spent evenly over the two years 2. Note no expenses listed for clean sales forceIf you essential to get a full essay, wander it on our website: BestEssayCheap.com

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