Question.2591 - Please upload a word document showing all of your work. Submissions with only answers will not recieve credit. The following is annual financial information for a cell phone repair company that has hired you to conduct some pricing analysis for them. Take this information to answer the following questions. Total Number of repairs................ 3,500 Average price for repairs................ $200 Variable cost for repairs.................. $50 Fixed cost............................... $300,0001. Calculate the current contribution margin (15 points) 2. Calculate the current breakeven point. (20 points) 3. Calculate the unit cost. (15 points) 4. Calculate the price at a 20% markup of unit cost. (15 points) 5. Assume number of repairs increased to 4,550 at the 20% markup price calculated above. Calculate price elasticity of demand. (15 points) 6. If the company wants to raise the original price by 20%, what would the new price be? (20 points)
Answer Below:
Given xxxxxxxxxxx Number xx repairs xxxxxxx price xxx repairs xxxxxxxx cost xxx repairs xxxxx cost xxxxxxxxxxxx Margin xxx sales xxxxxxx Variable xxxx - xxxxx Even xxxxx Fixed xxxxx contribution xxxxxx units xxxxx Unit xxxx Fixed xxxx Number xx units xxxxxx Fixed xxxx per xxxx Variable xxxx Total xxxx Unit xxxx on xxxx Price xxxxxxxxxx of xxxxxxxxxxx elasticity xx demand xxxxxx in xxxxxxxx change xx price xxxxxx in xxxxxxxx - xxxxxx in xxxxx - xxxxx elasticity xx demand xxxxxx in xxxxxxxx change xx price xxxxxxx Price xxxxx to xxxxx byMore Articles From Marketing
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