Question

The next two questions refer to the following fictional financial statement from Sharpie Markers, who sells their markers directly to consumers for $2/marker.

Revenue:                   $500,000

Plastic:                       $200,000

Ink:                              $1,000

Advertising:               $5,000

Overhead:                 $1,000

Depreciation:             $25

How many additional pens would Sharpie have to sell to maintain their current contribution to the organization if they invest $25,000 in advertising?

	A.	None of the above, but I could calculate this with the information I am given.
	B.	20,904
	C.	None of the above, I cannot calculate this with the information I am given.
	D.	836
	E.	21,259

Assume Sharpie wants to launch a “Holly Jolly” promotion, where they would discount their pens by 10%. How many more pens would they have to sell to justify this promotion from a contribution perspective?

	A.	None of the above, I cannot calculate this with the information I am given.
	B.	25.13% more pens
	C.	20.08% more pens
	D.	None of the above, but I could calculate this with the information I am given.

Assume Sharpie wants to do both the “Holly Jolly” Promotion AND invest in a $10,000 sales promotion campaign? How many more pens would they to sell to justify both of these efforts?

	A.	None of the above, I cannot calculate this with the information I am given.
	B.	10,246
	C.	None of the above, but I could calculate this with the information I am given.
	D.	10,041

Answer 1

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