dolution

Some of the information
for working out a Breakeven Point (BE units = [$ Fixed costs spent on the brand
/ $ Margin per unit) is found on the brand tabs in the Marketing Mix decision
area (see annotated sample below). Section 2.2 is simply asking is your price
per unit (P) high enough to cover the costs of producing one unit (C)? In other
words is the margin per unit (P-C) positive or negative.

Cost structure for the brand

Unit Margin SOLO

Recommended Retail Price
310

Average Retail Price 294
84

Average Distribution
Margin

Average Selling Price P
= Revenue per Unit 210

Estimated Unit Transfer
Cost C = Cost per unit 62

Unit Margin P-C = Margin
per unit 148