Zapo 1-2-3 is a top-selling electronic spreadsheet product. Zapo is about to release version 5.0. It divides its customers into two groups: new customers and upgrade customers (those who previously purchased Zapo 1-2-3, 4.0 or earlier versions). Although the same physical product is provided to each customer group, sizable differences exist in selling prices and variable marketing costs: E (Click the icon to view the price and cost information.) The fixed costs of Zapo 1-2-3 5.0 are $13,500,000. The planned sales mix in units is 60% new customers and 40% upgrade customers. Read the requirements. Requirement 1. What is the Zapo 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? Begin by determining the sales mix. For every bundle, units are sold to new customers, and units are sold to customer who bought upgrades. Data Table New Customers Upgrade Customers Selling price $ 225 $ 120 Variable costs Manufacturing $ 20 $ 20 60 80 25 Marketing $ 145 2$ 95 Contribution margin Click to select your answer(s) and th
Zapo 1-2-3 is a top-selling electronic spreadsheet product. Zapo is about to release version 5.0. It divides its customers into two groups: new customers and upgrade customers (those who previously purchased Zapo 1-2-3, 4.0 or earlier versions). Although the same physical product is provided to each customer group, sizable differences exist in selling prices and variable marketing costs: E (Click the icon to view the price and cost information.) The fixed costs of Zapo 1-2-3 5.0 are $13,500,000. The planned sales mix in units is 60% new customers and 40% upgrade customers. Read the requirements. Requirement 1. What is the Zapo 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? Begin by determining the sales mix. For every bundle, units are sold to new customers, and units are sold to customer who bought upgrades. Data Table New Customers Upgrade Customers Selling price $ 225 $ 120 Variable costs Manufacturing $ 20 $ 20 60 80 25 Marketing $ 145 2$ 95 Contribution margin Click to select your answer(s) and th
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter11: Linear Optimization Models
Section: Chapter Questions
Problem 5P: Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver,...
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