5 Maybelline recently introduced a high-end lip balm called BabyLips. The national target market...

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5 Maybelline recently introduced a high-end lip balm called BabyLips. The national target market is female, age 24 – 34, income$45,000 and higher. The current price is $4.90. Fixed costs areestimated at $8,775,000. Variable costs are currently $2.55.Maybelline believes that it can reduce cost of goods sold, due tofavorable contract negotiations with ingredient suppliers for sheabutter, centella and anti-oxidants. As a result, variable costs arepredicted to decline by $0.50. Maybelline is debating whether topass the cost savings on to the consumer or to maintain the currentprice. What would be the change in Maybelline's breakeven volume(in tubes, +/-) if the company maintains the current price? Roundyour answer to the nearest whole number. please show work

6 Maybelline is contemplating the introduction of a high-end lipbalm, tentatively called Baby Lips. The national target marketwould be female, age 24 – 34, income $45,000 and higher. Theanticipated price would be $4.35. Fixed costs are estimated at$7,250,000. Variable costs will be $2.05. The market for thisproduct category is estimated to be 22,500,000 tubes. What marketshare would Maybelline need to capture in order for Baby Lips tobreakeven? Report your answer as a percent, rounded to one decimalplace. please show work

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4.0 Ratings (452 Votes)
Selling price 49 Fixed costs 8775000 Variable costs 255 Contribution margin per unit Selling price per unit Variable costs per unit 49 255 235 Breakeven point in units Fixed costs    See Answer
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In: Accounting5 Maybelline recently introduced a high-end lip balm called BabyLips. The national target market is...5 Maybelline recently introduced a high-end lip balm called BabyLips. The national target market is female, age 24 – 34, income$45,000 and higher. The current price is $4.90. Fixed costs areestimated at $8,775,000. Variable costs are currently $2.55.Maybelline believes that it can reduce cost of goods sold, due tofavorable contract negotiations with ingredient suppliers for sheabutter, centella and anti-oxidants. As a result, variable costs arepredicted to decline by $0.50. Maybelline is debating whether topass the cost savings on to the consumer or to maintain the currentprice. What would be the change in Maybelline's breakeven volume(in tubes, +/-) if the company maintains the current price? Roundyour answer to the nearest whole number. please show work6 Maybelline is contemplating the introduction of a high-end lipbalm, tentatively called Baby Lips. The national target marketwould be female, age 24 – 34, income $45,000 and higher. Theanticipated price would be $4.35. Fixed costs are estimated at$7,250,000. Variable costs will be $2.05. The market for thisproduct category is estimated to be 22,500,000 tubes. What marketshare would Maybelline need to capture in order for Baby Lips tobreakeven? Report your answer as a percent, rounded to one decimalplace. please show work

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