Please address each of the following issues in a separate paragraph or two, with

Question

Please address each of the following issues in a separate paragraph or two, with each response identified by the corresponding letter of the issue you are addressing. Your responses should reflect issues you have studied in the first four chapters, and must be your own work. If you do incorporate other sources, be sure to clearly identify them as such. All submissions are expected to be college level work, with appropriate spelling, grammar, formatting, etc., and must be submitted in .doc or .dox format.

3-Promotion is the “P” most generally identified with Marketing, but promotional efforts need to respond to an ever more difficult to reach target market. Describe yourself in the terms a marketer might use to describe you as a consumer, and tell 1. how you can best be reached, and 2. which traditional method of promotion is unlikely to be successful in attracting your attention.

4-Surfer Tom is going to sell his custom surfboards. He was able to rent a garage from his Uncle Ed for $1,200 a month, which includes utilities. He anticipates being able to sell his boards for $500 each. The raw materials (resin, foam, etc.) will cost an average of $200 for each board, and he plans to spend $60 per board to advertise them to local surfers. Assuming these are all the costs and revenues, what will be Surfer Tom’s monthly break-even point in units? Does this seem like a reasonable amount for him to produce and sell every month? Please show your calculations.

Explanation / Answer

Answer:-

Total Monthly cost = $1200 (Garage Rent) + $200x (raw material cost) + $60x (advertisement cost)

Revenue = 500x (selling price) to breakeven the cost should equal the revenue

500x - (1200 + 200x + 60x) = 0

500x - 1200 - 260x = 0

240x - 1200 = 0

240x = 1200

x = 5

So it is clear that the number of boards Tom needs to sell each month to break even is 5.

Tom needs to produce and sell more than 5 to earn more capital for profit and to recover the other expenditure in the future. Number 5 is the break even point of sales. It is not reasonable.

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