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Question : (I) You have just been appointed the product manager of

(I) You have just been appointed the product manager of the "Clearlake" counter top water dispensers in a large consumer products company. As part of your new job, you want to develop an understanding of the financial situation for your product. Your brand assistant has provided you with the following facts: a. Retail selling price S70 per unit b. Retailers margin 35% c. Jobber's margin 25% d. Wholesalers margin 20% e. Direct factory labor S2.5 per unit f. Raw materials S2 per unit g. All factory and administrative overheads S2.4 per unit (if unit volume 00,000) h. Salesperson's commissions 10% of manufacturers selling price i. Sales force travel costs S300,000 S800,000 j. Advertising k. Total market for counter top water dispensers million units l. Current yearly sales of "Clearlake" 220,000 units uestions 1. What is the contribution per unit for the "Clearlake" brand? 2. What is the break in units and in dollars 3. What market share does the Clearlake brand need to break even? 4. What is the current total contribution? 5. What is the current before-tax profit of the Clearlake brand? 6. What market share must Clearlake obtain to contribute a before tax profit of exactly S3 million? (I) One of the first decisions you have to make as the brand manager for Clearlake is whether or not to add anew line of counter top water dispensers, the "Super-Clearlake line. The line would be marketed in addition to the original Clearlake line. Your brand assistant has provided you The wholesaler sells to the jobber who, in turn, sells to the retailer. 2 You are a part of the company that manufactures Clearlake. Hence, you have to view this problem from the perspective of the manufacturer of the product (and not from that of the middlemen

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