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Marketing Scenario B: You are a supplier of a product line. Given the information below, answer...

Marketing Scenario B: You are a supplier of a product line. Given the information below, answer each of the questions asked. You are given the following information (2017 Annual): Price per Unit $25.00 Advertising $15,000 Packaging per unit $ 5.00 Direct Labor per unit $ 8.00 Depreciation $25,000 Royalties per unit $ 2.00 Plant and Equipment $50,000 Total Units Sold 10,000 Your firm’s Total Assets are $400,000 with total equity of $75,000. Using the Contribution Margin PRICE PER UNIT METHOD, make the calculations indicated below (all formulae and calculations must be shown). Convert your Price per Unit Performance Assessment to an Income Statement based on Total Sales. c. Prepare your 2017 Income Statement (based on total Sales)

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Answer #1

royalties are paid to the sales agents along with the sales it is the variable cost

packing is a variable cost

direct labor is variable costs

only advertising and depreciation are the fixed costs

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