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Executives at Barbco, a pharmaceutical manufacturer, are preparing to introduce Betatron, a new vitamin into the...
Executives at Barbco, a pharmaceutical manufacturer, are preparing to introduce Betatron, a new vitamin into the market. The following cost information pertains to new vitamin:
| Chemical compound | $1.25/bottle |
| Packaging/label | $0.35/bottle |
| Developer royalties | $1.00 bottle |
| Advertising and promotion | $675,000 |
| Barbco overhead | $500,000 |
| Selling price per bottle to distributor | $9.00 |
Based on the above, answer the following three questions.
Based on the information provided above:
Dollar contribution per bottle?
Based on the information provided above:
Net profit if 1 million bottles are sold?
Based on the information provided above:
Necessary unit volume to achieve a $200,000 profit.
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2.Executives of Vitagen, a pharmaceutical manufacturer, are preparing to introduce Betatron, a new vitamin into the...
2.Executives of Vitagen, a pharmaceutical manufacturer,
are preparing to introduce Betatron, a new vitamin into the market.
The following cost information pertains to Betatron:
Chemical compound $1.25/bottle
Packaging/labeling $0.35/bottle
Developer royalties’ $1.00/bottle
Advertising and promotion $675,000
Vitagen overhead $500,000
Selling price per bottle to distributor
$9.00
Calculate the following:
Contribution per bottle
Break-even volume in bottle and dollars
Net profit if 1 million bottles are sold
Necessary unit volume to achieve a $200,000
profit
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