Financial Aspects Of Marketing

Aquilah Ahmad
MKTG 5103
Week 2 Assignment

Problem 5:

personate LX4: ccc units * 60% = 180 units
fashion model LX1: 10% * 180 = 18 units
Model LX2: 30% * 180 = 54 units
Model LX 3: 60% * 180 = 108 units

Model| Selling equipment casualty| covariant hail| Demand| share| Total Contribution|
Model LX1| $clxxv | $100 | 2000| $75 | $ one hundred fifty,000 |
Model LX2| $250 | $ one hundred twenty-five | 1000| $125 | $125,000 |
Model LX3| $300 | $140 | vitamin D| $160 | $80,000 |
| | | | | $355,000 |

Model| Selling Price| Variable bell| Demand| Contribution| Total Contribution|
Model LX1| $175 | $100 | 1982| $75 | $148,650 |
Model LX2| $250 | $125 | 946| $125 | $118,250 |
Model LX3| $300 | $140 | 392| $160 | $62,720 |
Model LX4| $375 | $225 | 300| $150 | $45,000 |
| | | | meliorate Costs| 20,000|
| | | | | $354,620 |

$355,000 - $354,620 = $380
Since theres a $380 accrue in income VCI should not add the Model LX4 to its follow of products.





Problem 6:

Model| Selling Price| Variable Cost| Demand| Contribution| Total Contribution|
DC6900-Omega| $5,900 | $2,200 | 400,000| $3,700 | $1,480,000,000 |
DC6900-Alpha| $2,500 | $1,200 | 600,000| $1,300 | $780,000,000 |
| | | | | $2,260,000,000 |

Model| Demand| %| Demand Decr.| New Demand|
DC6900-Omega| 400,000| 30%| 150000| 250,000|
DC6900-Alpha| 600,000| 20%| 100000| 500,000|

Model| Selling Price| Variable Cost| New Demand| Contribution| Total Contribution|
DC6900-Omega| $5,900 | $2,200 | 250,000| $3,700 | $925,000,000 |
DC6900-Alpha| $2,500 | $1,200 | 500,000| $1,300 | $650,000,000 |
DC6900-X| $3,900 | $1,800 | 500,000| $2,100 | $1,050,000,000 |
| | | | Fixed Costs| 2,000,000|
| | | | | $2,623,000,000 |

$2,260,000,000 - $2,623,000,000 = $-363,000,000
Since theres a $363M increase in income Mr. Leonard should add the DC6900-X model to its line...If you want to get a full essay, order it on our website: Orderessay



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