Problem:
Now, if Zebra's average cost (expenses) were $13.13 (per case) and the Distributors (wholesale) work on a 23% margin and the retailers work on a 20% margin; what would the income per case be for Zebra beer at the following three retails?
Please check your answers to the following:
1. $4.99 per 6 pk. (-$.83 per case)
2. $5.99 per 6 pk. ($1.63 per case)
3. $6.99 per 6 pk. ($4.09 per case)
And to continue with a break-even analysis, we will use the following information:
Assume average cost (expenses) per case of $13.13 - Would these be variable costs? (yes)
Assume Zebra has fixed costs of $100,000.00 for this year.
What is the break-even volume (cases) for Zebra (MadCap) at the following retail prices? Please show the formula with your results.