Class Notes (838,371)
Canada (510,867)
Marketing (1,395)
MKT 300 (106)
Lecture

Metric 1 worksheet

3 Pages
180 Views
Unlock Document

Department
Marketing
Course
MKT 300
Professor
Shavin Malhotra
Semester
Spring

Description
Worksheet: Metric 1 Expense Types 1) The Comfy Chair Company makes reclining chairs at its plant and sells them exclusively  through its own retail store. It has the following expenses: Plant rent and taxes = $12,000.00 Office and management expenses = $220,000.00 Machinery and equipment purchased = $100,000.00 Direct materials = $27.00/chair Direct labour = 4 hours/chair @ $14.00/hour Transportation = $5.00/chair Commercial store front unit purchase = $500,000.00 Advertising costs = $100,000.00 Sales staff wages before commissions = $250,000.00 Commission = $12.00/chair (a) Identify the Comfy Chair Company’s variable costs. (b) What is the total cost to produce and sell each reclining chair? (c) Identify the Comfy Chair Company’s fixed costs. (d) What are the total fixed costs? (e) Identify the one­time fixed costs incurred by the Comfy Chair Company.  (f) What are the total one­time fixed costs? 2) Thompson Toiletries, Inc. has developed an addition to its mens’ cologne line tentatively  branded Ode d’Toad Cologne. It costs 45 cents to produce each 60mL bottle, and heavy  advertising expenditures in the first year would cost $900,000. Ode d’Toad Cologne is  priced at $7.50 for a 60mL bottle.  (a) What is the variable cost per unit to produce a bottle of Ode d’Toad? (b) What are the total fixed costs to produce and sell Ode d’Toad?  3) Executives of Radical Recordings Ltd. produced an album entitled Sunshine/Moonshine  by the Starshine Sisters Band. The cost and price information was as follows: Album cover $1.00 Songwriter’s royalties $0.30 Recording artist’s royalties $0.70 Direct material and labour costs to produce  $1.00 each album Cost of producing the album (studio fee,  $100,000.00 advertising, promotional expenses, etc) Selling price $7.00 (a) Identify the variable costs, and amounts, that go into producing each album (b) Identify the fixed costs, and amount, for producing the album 4) You are the owner of a travel agency that sells trips to university
More Less

Related notes for MKT 300

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit