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How can I break into marketing?

I need help with this marketing break-even question!?

  • Johnson & Johnson manufactures condoms. The company wishes to introduce a new line and make one of the current lines obsolete. The fixed costs will be shared equally with the one remaining line. Richard Hornie is doing a break-even analysis on the new line. The development costs are estimated at $40,000. The lease on the plant is $10,000 per quarter. Administrative costs including salaries are: $150,000 per month. The cost for making a $12.00 box of condoms is $2.25 for materials, $1.50 for staff and $0.25 for a box. 1) How many boxes of condoms will Johnson & Johnson have to sell in the first year to break-even? 2) How much will the break-even revenue be? 3) If they expect to sell $1,600,000 in the first year, what would the profit be?

  • Answer:

    7

Karl W at Yahoo! Answers Visit the source

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how about an explanation instead, so you can learn to do this? Pretend you're a business owner...then look at the problem again (in more understandable wording). You'd add your expenses (you have 3 there) then separately add the cost to make the items (you have 4 there), then divide one into the other to get the break-even point. So re-read the directions so you can answer this.

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