Refer to the following information for the next three items. You did such a terr
ID: 2723428 • Letter: R
Question
Refer to the following information for the next three items. You did such a terrific job in your long and distinguished career of 98.7162987219276 days that you have decided to go into business for yourself as a marketing consultant. One of your clients, the Dummanugly Company (a company from Tanzania) hired you to perform a break-even analysis for it. It provided the following information to help in your work. The name of the Tanzanian currency is the schilling. Total Fixed Costs = 189,655,000 schillings Variable Cost per Unit = 10,530 schillings Price per Unit = 19,950 schillings Which of the following numbers is the break-even point in units? 20,133.23 units 401,657,883 units 20,133 units 20,134 units None of the above What pricing strategy is the Dummanugly Company most likely using? Skimming pricing Psychological pricing Competitive pricing MSRP pricing Penetration pricing Which of the following is the break-even point in currency? 401,657,882.17 schillings 20,133.23 schillings 401,657,883 schillings 401,657,882.165 schillings None of the aboveExplanation / Answer
Total Fixed cost = 189,655,000
Variable cost per unit = 10,530
Selling price per unit = 19,950
7.
Number break even for case 1 is calculated below:
BEP in units = Fixed costs/ (Selling price per unit- variable costs per unit)
= 189,655,000 / ($19,950 - $10,530)
= 20,133.27
Number break even for case 1 is 20,134 units
Hence, Option (D) is correct answer.
8.
Currently company is using Competitive pricing.
Hence, Option (C) is correct answer.
9.
Breakeven price in currency = break even Quantity × Selling price
= 20,133.27 × 19,950
= 401,657,882.165
Currency Breakeven is 401,657,882.165 schillings
Hence, Option (D) is correct answer.
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