Assignment:
Review book: Marketing-real-People-real-Choices by Michael R.SOLOMON
Questions are designed to demonstrate understanding of pricing covered in chapter 10 and to prepare you for questions on the next exam. Each team member must answer two of the following questions:
1- Using the following information, estimate Rogue Outdoor's annual or monthly market demand for adult hiking shoes:
• Number of 18-65 year old adults in market: 53,600
• Total percentage of adults who buy hiking shoes each year 10%
• Rogue Outdoor share of total hiker market 25%
2- Calculate Rogue Outdoor's break-even point in units and dollars for selling hiking shoes if:
• Average per unit variable cost (Wholesale price Rogue pays for hiking shoes): $50
• Total fixed costs assigned to hiking shoes: $36,000
• Average per unit revenue (price) of hiking shoes: $100