Accounting homework help.
- What do you think is the proper role of metrics for marketers? How should we use metrics, and how do we decide which metrics are appropriate?
Answer half a page or less.
- Wally’s Widget World is an online retailer that makes and sells widgets. There are three models of widgets, each with its own cost of materials and labor.
|Model||Percent of sales||Materials cost||Labor cost||Selling price|
|Econowidget – base-level widget for the budget-conscious widget user||35%||$3.50||$1.50||$6.99|
|Superwidget – adds additional feature for the more demanding widget user||45%||$4.00||$1.75||$8.99|
|Widget Supreme – for the more discerning and sophisticated widget user||20%||$5.25||$2.00||$11.99|
The widgets are all the same size and approximate weight, so shipping costs for each widget (regardless of model) are $2.50, and customers are charged $3.99 per widget. Wally’s Widget World has monthly costs below:
Administrative salaries 6,000
In addition, Wally’s budgets $3,000 each month on banner ads and search-engine marketing. Assuming the percentage of sales for each product in the product line remains constant, perform the following analyses:
- Calculate the break-even volume
- Calculate the break-even revenue
- Wally’s Widget World has a monthly target profit of $5,000. What should be the target volume and revenue for this objective?
- Is this a viable target profit? Explain using your calculations. Give an example of another target profit that you think would work and explain why.