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MAR 4804

ring 2023 MAR 4804/U04 (TUES) nancial/Analytical Question \#2 (FAQ\#2): note that there are conceptual sues in each of the Financial/Analytical Assignments. You should iecifically identify any assumptions that you make and justify the cision(s) made. 3riefly discuss each of the following 3 topics: each is worth 1 point. 1A: THE MANUFACTURER'S PRICE NEEDS TO BE ADJUSTED FROM THE RETAIL PRICE TO REFLECT THE COSTS OF DISTRIBUTION; ( 1 point) 1B: CAREFULLY REVIEW THE DEFINITION OF A "MARKET" IN DETERMINING THE "BREAK EVEN MARKET SHARE"; (1 points) 1C: DISTINGUISTA BETWEEN RELEVANT AND SUNK COSTS. (1 point) 1. Jessell Manufacturing Corp. is considering marketing their new hearing aid in the city of "Big Smoke". The primary target market for this device is the hearing impaired over the age of 60 years. As she considers the possibility, the VP/Marketing reviews the following data for FY 2024: RetailpriceRetailmarginWholesalemarginR&Ionhearingaid,FYs2021,2022Introductorypromotionaloutlays,FY2024JessellsfixedmanufacturingcostsVariablemanufacturingcosts/unitRetailerssalespersonscommissionJessellsssalescommissionpaidPopulationofBigSmokeProportionofpopulationover60years:$499:47.5%:22.5%:$129,000$199,000$179,000peryear(FY2024):$89:2%ofretailerssellingprice:5%ofmanufacturerssellingprice:2,750,000:22.5% a) What is Jessell's (show your logic) i) selling price (2) ii) unit contribution margin (\$)? (3) iii) contribution margin ratio (%) ? (3) (b) How many units must Jessell sell in the first year (2024) to break even? Carefully explain, including any assumptions that you make. (5) c) If 20% of the "over 60 population is hearing impaired, what is Jessell's break- even market share in 2024? (Identify and explain any assumption(s) that are necessary). (5) Note: points are in parentheses. ring 2023 MAR 4804/U04 (TUES) nancial/Analytical Question \#2 (FAQ\#2): note that there are conceptual sues in each of the Financial/Analytical Assignments. You should iecifically identify any assumptions that you make and justify the cision(s) made. 3riefly discuss each of the following 3 topics: each is worth 1 point. 1A: THE MANUFACTURER'S PRICE NEEDS TO BE ADJUSTED FROM THE RETAIL PRICE TO REFLECT THE COSTS OF DISTRIBUTION; ( 1 point) 1B: CAREFULLY REVIEW THE DEFINITION OF A "MARKET" IN DETERMINING THE "BREAK EVEN MARKET SHARE"; (1 points) 1C: DISTINGUISTA BETWEEN RELEVANT AND SUNK COSTS. (1 point) 1. Jessell Manufacturing Corp. is considering marketing their new hearing aid in the city of "Big Smoke". The primary target market for this device is the hearing impaired over the age of 60 years. As she considers the possibility, the VP/Marketing reviews the following data for FY 2024: RetailpriceRetailmarginWholesalemarginR&Ionhearingaid,FYs2021,2022Introductorypromotionaloutlays,FY2024JessellsfixedmanufacturingcostsVariablemanufacturingcosts/unitRetailerssalespersonscommissionJessellsssalescommissionpaidPopulationofBigSmokeProportionofpopulationover60years:$499:47.5%:22.5%:$129,000$199,000$179,000peryear(FY2024):$89:2%ofretailerssellingprice:5%ofmanufacturerssellingprice:2,750,000:22.5% a) What is Jessell's (show your logic) i) selling price (2) ii) unit contribution margin (\$)? (3) iii) contribution margin ratio (%) ? (3) (b) How many units must Jessell sell in the first year (2024) to break even? Carefully explain, including any assumptions that you make. (5) c) If 20% of the "over 60 population is hearing impaired, what is Jessell's break- even market share in 2024? (Identify and explain any assumption(s) that are necessary). (5) Note: points are in parentheses

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