3.Suppose Coca Cola launches a new Tab energy drink.They have spent years and approximately 500,000 onresearch and development and test marketing. They plan tooffer the drink only in urban areas representing 80% of theUS Market which is estimated at 50 million cans. When theylaunch, they plan to offer a $0.25 coupon. Historically, only20% of US consumers actually redeem coupons. Coca Colaplans to use an aggressive advertising and marketingcampaign that represent fixed costs of $2,000,000.Suggested Retail PriceCost of MaterialsCost of LaborCoupon (with 20% redemption rate) S.25Retail MarginWholesaler Margin$1.00 bottles0.20/ bottles.07/ bottle20% off retail price10% of the retailer's cost1. What price does the retailer pay?2. What price does the wholesaler pay?3. What is Coke's variable cost of goods sold per unit?4. What is Coke's contribution per unit?5. How many units does Coke have to sell to break even?6. At wholesale prices, what is Coke's breakeven dollaramount.7. What percent of the relevant market would Coke need tocapture to break even?

A cost is the resources value in monetary terms spent by the business to produce and deliver the…

1. What price does the retailer pay? 2. What price does the wholesaler pay? 3. What is Coke's variable cost of goods sold per unit? 4. What is Coke's contribution per unit? 5. How many units does Coke have to sell to break even? 6. At wholesale prices, what is Coke's breakeven dollar amount. 7. What percent of the relevant market would Coke need to capture to break even?

1. What price does the retailer pay? 2. What price does the wholesaler pay? 3. What is Coke's variable cost of goods sold per unit? 4. What is Coke's contribution per unit? 5. How many units does Coke have to sell to break even? 6. At wholesale prices, what is Coke's breakeven dollar amount. 7. What percent of the relevant market would Coke need to capture to break even?

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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