Zapo 1-2-3 is a top-selling electronic spreadsheet product. Zapo is about to release version 5.0. It divides its customers into two groups: new customers and upgrade customers (those who previously purchased Zapo 1-2-3, 4.0 or earlier versions). Although the same physical product is provided to each customer group, sizable differences exist in selling prices and variable marketing costs: E (Click the icon to view the price and cost information.) The fixed costs of Zapo 1-2-3 5.0 are $13,500,000. The planned sales mix in units is 60% new customers and 40% upgrade customers. Read the requirements. Requirement 1. What is the Zapo 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? Begin by determining the sales mix. For every bundle, units are sold to new customers, and units are sold to customer who bought upgrades. Data Table New Customers Upgrade Customers Selling price $ 225 $ 120 Variable costs Manufacturing $ 20 $ 20 60 80 25 Marketing $ 145 2$ 95 Contribution margin Click to select your answer(s) and th

Zapo 1-2-3 is a top-selling electronic spreadsheet product. Zapo is about to release version 5.0. It divides its customers into two groups: new customers and upgrade customers (those who previously purchased Zapo 1-2-3, 4.0 or earlier versions). Although the same physical product is provided to each customer group, sizable differences exist in selling prices and variable marketing costs: E (Click the icon to view the price and cost information.) The fixed costs of Zapo 1-2-3 5.0 are $13,500,000. The planned sales mix in units is 60% new customers and 40% upgrade customers. Read the requirements. Requirement 1. What is the Zapo 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? Begin by determining the sales mix. For every bundle, units are sold to new customers, and units are sold to customer who bought upgrades. Data Table New Customers Upgrade Customers Selling price $ 225 $ 120 Variable costs Manufacturing $ 20 $ 20 60 80 25 Marketing $ 145 2$ 95 Contribution margin Click to select your answer(s) and th

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter13: Nonlinear Optimization Models

Section: Chapter Questions

Problem 5P: Jims Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demand for these two...

See similar textbooks

Similar questions

(Q.7) Data 1-2-3 is a top-selling electronic spreadsheet product Data is about to release version 5.0. 11 divides its customers into two groups: new customers and upgrade customers (those who previously purchased Data 1-2-3, 4.0 or earlier versions). Although the same physical product is provided to each customer group, sizable differences exist in selling prices and variable marketing costs: New Customers $275 Selling price Variable costs Manufacturing Marketing Contribution margin $35 65 100 $175 Upgrade Customers $100 $35 15 50 $ 50 The fixed costs of Data 1-2-3, 5.0 are $15,000,000. The planned sales mix in units is 60% new customers and 40% upgrade customers. Questions: 1. Calculate the Data 1-2-3, 5.0 breakeven point in units (number of bundles, new customers, upgrade customers) assuming that the planned 60% 40% sales mix is attained? 2. If the sales mix is altained, what is the operating income when 220,000 total units are sold? 9
Swippy Software offers three software products: a word processing software, a spreadsheet software, and an accounting software. Information for the stand-alone selling prices and costs of its individual products is as follows: Stand-Alone Selling Price, Cost Word Processing (WP) $75 $18 Spreadsheet (SS) $90 $20 Accounting Software (AS) $65 $25 Recently, Swippy Software has begun offering software bundles, which includes all three programs at a discounted price. The bundle price for the software is $185.00 Using the unit cost as the weights, allocate the bundled price to the three programs using the stand-alone revenue-allocation method. Allocate the bundled price to the three types products using the incremental revenue-allocation method. Assume Spreadsheets is the primary product, followed by Word Processing, and then Accounting Software.
Customer Value, Strategic PositioningAdriana Alvarado has decided to purchase a personal computer. She hasnarrowed the choices to two: Drantex (ad Confiar. Both brands have thesame processing speed, 6.4 gigabytes of hard-disk capacity, two USBports, and a DVDRW drive, and each comes with the same basic softwaresupport package. Both come from mail-order companies with goodreputations. The selling price for each is identical. After some review,Adriana discovers that the cost of operating and maintaining Drantexover a 3-year period is estimated to be $300. For Confiar, the operatingand maintenance cost is $600. The sales agent for Drantex emphasizedthe lower operating and maintenance costs. The agent for Confiar,however, emphasized the service reputation of the product and thefaster delivery time (Confiar can be purchased and delivered 1 weeksooner than Drantex). Based on all the information, Adriana has decidedto bur Confiar. Required:1. What is the total product purchased by Adriana?2.…
You are creating part of an Excel model that will set the price of an item based on whether the customer is a preferred customer or not. The partially completed model in the attached file. <-- Click here to download the Excel file. In cell B6, you will enter the formula that will use this logic:When preferred status is Yes, the price is the preferred price. Otherwise the price is the regular price. Customer ID: 68YJW Prices: Regular $26.95 Customer Name Reggie Greene Preferred $21.95 Preferred? Y/N: Yes Customer Price
A computer hardware firm sells both laptop computers and printers. Through the magic of focus groups, their pricing team determines that they have an equal number of three types of customers, and that these customers' reservation prices are as illustrated in the figure below. Printer $100 Bundle $950 $1,000 $750 Laptop $850 Customer A Customer B $950 $600 $50 $150 Customer C Assume for simplicity the marginal cost of production for laptops and printers is zero. If the firm were to charge only individual prices (not use the bundle price), what prices should it set for its laptops and printers to maximize profit? Assuming for simplicity that the firm has only one customers of each type, how much does it earn in total? To maximize profit using individual prices, the firm should charge a price for laptops of p= 650 and a price for printers of p= 100 (Enter your responses as whole numbers.)
Yahoo was using Huawei's hardware and technology for their internet related business platforms. Now due to the new policy of the company, Yahoo wants to use Apple's Hardware and technology. Yahoo says features given by Apple are better than Huawei. The switching cost that Yahoo is going to face is_ O a. Information and data related switching costs. O b. Contractual commitment related switching costs. c. All of these O d. Financial commitment related switching costs.
Relevant costs, opportunity costs. Gavin Martin, the general manager of Oregano Software, must decide when to release the new version of Oregano’s spreadsheet package, Easyspread 2.0. Development of Easyspread 2.0 is complete; however, the diskettes, compact discs, and user manuals have not yet been produced. The product can be shipped starting July 1, 2017. The major problem is that Oregano has overstocked the previous version of its spreadsheet package, Easyspread 1.0. Martin knows that once Easyspread 2.0 is introduced, Oregano will not be able to sell any more units of Easyspread 1.0. Rather than just throwing away the inventory of Easyspread 1.0, Martin is wondering if it might be better to continue to sell Easyspread 1.0 for the next three months and introduce Easyspread 2.0 on October 1, 2017, when the inventory of Easyspread 1.0 will be sold out. The following information is available:
That is, it is unacceptable to manually compute the solutions and simply insert the answers into the cells of an excel spreadsheet.) Raiders Ltd CVP Problem Prepare an Excel worksheet that illustrates cost-volume-profit (CVP) analysis, also referred to as breakeven analysis. Assume that a particular product sold at Raiders Ltd a US based toy company has a sales price per unit of $4.00; variable cost per unit of $2.20; and total fixed cost of $100,000. Task 1) Calculate the contribution margin per unit, the break-even point in units of sales, and the break-even point in dollars of sales. In the inputarea, show sales price per unit, variable cost per unit, and total fixed cost. In the output area, show contribution margin per unit, breakeven point in units, and breakeven point in dollars computed using appropriate formulas. Task 2) Assume that the planning team at Raiders Ltd estimates that for the next planning period selling price for this product will increase 50%; variable expenses…
2. Your company is trying to decide whether to host email with Google Cloud or continue to run it in house with Microsoft Exchange. The current solution Microsoft Exchange has maintenance costs of $15,000, hardware costs of $10,000 and $30,000 in support costs annually. Google Cloud costs $35,000 annually. What amount of indirect costs are acceptable to make the switch to Google Cloud worthwhile?
Omantel is one of the leading telecommunication companies in Oman. The company is decided to provide their services to all the areas in the country. Therefore, to attract more customers it did many advertisements and offers. This explains which of the following marketing mix? Product Place Promotion Price acer F12 PrtSc Pause Insert Pg Dn F9 F10 F11 Home Pg Up Scr Lk SysRq Break Delete
Breakeven Computation Directions: Analyze the given problems and compute for what is being asked. 1. TechGate makes PS4 games with a selling price of P1,040.00 per CD with a variable cost of P624.00 per unit. The fixed cost for the period is P2,080,000. How many CDs should TechGate sell to breakeven? 2. Adel and Tony run a small online business specializing in delivering organic fruit and vegetables to the local area. They buy from local farms and package these together in boxes. Each box costs P208.00 and is being sold at P500.00 per box. Other fixed costs incurred each year are as follows: Php Rent of delivery van 4,500 Rent of premises 10,500 Direct wages 10,000 Advertising 2,000 Calculate the break-even point in boxes (unit).
The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 230, Camera B Price: 310). The sales of these products are not independent of each other, but rather if the price of one increase, the sales of the other will increase. In economics, these two camera models are called substitutable products. The store wishes to establish a pricing policy to maximize revenue from these products. A study of price and sales data shows the following relationships between the quantity sold (N) and prices (P) of each model: NA = 192 - 0.5PA + 0.25PB NB = 305 + 0.08PA - 0.6PB Construct a model for the total revenue and implement it on a spreadsheet. Develop a two-way data table to estimate the optimal prices for each product in order to maximize the total revenue. Vary each price from $250 to $500 in increments of $10. Max profit occurs at Camera A price of $ . Max profit occurs at Camera B price of $ .