Mark4210 Quantitative Analysis Case Exercise You are the new Marketing Manager for Toasty ovens for an appliance manufacturer. The current annual total market volume of ovens is 5 milli units, and Toasty oven sells about 750,000 units per year. The previous manager of Toasty ovens had collected the following data f planning the business in the coming year. - Direct factory labor = $13.20 per unit - Raw materials = 10% of Manufactures Selling Price - Salesperson's Commissions = 20\% of Manufacturer Selling Price - Factory \& administrative overheads = $2 , 000 , 000 - Retail selling price = $300 per unit - Retailers margin = 20% - Wholesaler's margin = 20% - Distributor's margin = 15% - Sales force travel expenses = $800 , 000 - Advertising = $3 million - Product Liability Insurance = $100 , 000 Questions 1. What is the contribution per unit for the Toasty ovens? Answer 2. What is the break even volume for Toasty in units and in dollars? Answer 3. What market share does the Toasty brand need to break even? Answer What is the current total contribution? Answer 5. What is the profit impact for Toasty? Answer 6. How many units does Toasty need to sell to achieve to have a profit impact of $100 million? Answer .

1. Market failure occurs because A. the market system forces individuals to consider the social
consequences of their actions. B. the market system does not make individuals fosponsible for
the social costs/benefits of their actions C. the market system forces individuals to consider the
social and private consequences of their actions D. the market system does not make individuals
responsible for the private costs/benefits of their action