NAME: SEHRISH TAHIR

ID# 18227
COURSE: MARKETING ANALYTICS
SUBMITTED TO: NAVEED ILYAS
Assignment#1

BREAK EVEN ANALYSIS OF GUARDIAN (FIRST 2 YEARS)

1.

Fixed Costs 2007 2008

100,000 -
License Fees
Salary of new Sales
255,000 255,000
Executives (85000*3)
Display boards
(1,000,000 for two
500,000 500,000
years) - (10000*100)
Marketing Investments
(3,000,000 for two
1,500,000 1,500,000
years)

2,355,000 2,255,000
Total
2.

Contribution per unit: 2007 2008

17.87 17.87
Manufacturer's Selling Price
0.89 0.89
Less: 5% off invoice trade
0.36 0.36
Less: 2% advertising allowance
0.89
Less: 5% of royalty as license fees
16.62 15.73
Net Selling price
10.82 10.82
Cost of goods sold
5.80 4.91
Contribution per unit

3.

Break even
volume
= Fixed
Costs /
Contribution 406,097 459,679
Total for two
years 865,776