Acct 4360

Topics: Marketing, Television, Cost Pages: 2 (529 words) Published: January 17, 2011
Ver. 04/09

PRACTICE FINANCIAL QUIZ #1
NOTE: The figures in these questions are not representative of any company or industry and are for the purpose of learning certain financial concepts that pertain to marketing.

PART I—SALES ANALYSIS The J&J Corporation manufactures television sets, DVD players and MP3 players. The wholesale prices to their customers can vary from under $100 to over $1000, depending on the technical complexity of the item and the quantity purchased. Analyze the following sales data for the company in the following sections: 1. Perform calculations that are relevant to understanding company performance and product 2. What critical issue can you identify for the company by analyzing the financial data? Section 1—Sales Data for 5 years Year 1999 2000 2001 2002 2003 Section II—Sales Data for 2003 Product Line Televisions DVD Players MP3 Players Total Company Forecast $4,678,000 $25,200,000 $2,340,000 $32,218,000 Company Sales $5,946,897 $17,840,691 $5,946,897 $29,734,485 Industry Sales $310,730,000 $131,340,000 $208,430,000 $650,500,000 Company Sales $26,006,196 $27,127,246 $28,206,166 $29,008,143 $29,734,485 Industry Sales $200,460,000 $365,650,000 $450,700,000 $500,800,000 $650,500,000

Section III—Changes in Sales Data from 2002 to 2003 2002 $ Sales $4,237,148 $23,260,003 $1,510,992 $29,008,143 2003 $ Sales $5,946,897 $17,840,691 $5,946,897 $29,734,485

Product Line Televisions DVD Players MP3 Players Total

Unit Sales 16,948 139,908 6,043

Unit Sales 19,822 178,407 23,787

1 Entrepreneurial Marketing—Practice Financial Quiz #1 ENTR 3140

Ver. 04/09

PART II—MARKUP ANALYSIS The J&J Corporation wants to make a 35% markup (on costs) on a certain line of television sets that the company sells to its customers at an average price of $250. What should the cost of production of these sets average if they are to achieve this markup.

PART III—BREAKEVEN ANALYSIS The J&J division pays the following portion of monthly fixed...
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