None Timothy Donaghy has developed a unique formula for growing hair. His proprietary lotion, used regularly for 45 days, will grow hair in baldspots (with varying degrees of success). Timothy calls his lotion Hair-Again and is selling it via the telephone and Internet. His major formof marketing is through 15-minute infomercials and Internet advertising. Timothy sells each 16-ounce bottle of Hair-Again for $15 andpays a commission of 3 percent of sales to telephone operators who field the 1-800 phone calls from potential customers. Fixed marketingexpenses for each quarter of the coming year include:Internet banner adsTelephone operator time$7,600Travel5,0003,000In addition, early next year Timothy intends to film and show infomercials on television. He expects the cost to be $12,000 in quarters 1and 2, and that the cost will rise to $24,000 in each of quarters 3 and 4. Timothy expects the following unit sales of Hair-Again:Quarter 15,000Quarter 215,000Quarter 340,000Quarter 4135,000Required:1. Construct a marketing expense budget for Hair-Again for the coming year. Show total amounts by quarter and in total for the year. Ifrequired, round your answers to two decimal places.

Certainly! Let's break down the marketing expense budget for Hair-Again step by step.**1. Commission…

Answered: Timothy Donaghy has developed a unique…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 8CE: Timothy Donaghy has developed a unique formula for growing hair. His proprietary lotion, used...

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Timothy Donaghy has developed a unique formula for growing hair. His proprietary lotion, used regularly for 45 days, will grow hair in bald spots (with varying degrees of success). Timothy calls his lotion Hair-Again and is selling it via the telephone and Internet. His major form of marketing is through 15-minute infomercials and Internet advertising. Timothy sells each 16-ounce bottle of Hair-Again for $15 and pays a commission of 3 percent of sales to telephone operators who field the 1-800 phone calls from potential customers. Fixed marketing expenses for each quarter of the coming year include: Internet banner ads $7,600 Telephone operator time 5,000 Travel 3,000 In addition, early next year Timothy intends to film and show infomercials on television. He expects the cost to be $12,000 in quarters 1 and 2, and that the cost will rise to $25,000 in each of quarters 3 and 4. Timothy expects the following unit sales of Hair-Again: Quarter 1 5,000 Quarter 2 15,000…
Timothy Donaghy has developed a unique formula for growing hair. His proprietary lotion, used regularly for 45 days, will grow hair in bald spots (with varying degrees of success). Timothy calls his lotion Hair-Again and is selling it via the telephone and Internet. His major form of marketing is through 15-minute infomercials and Internet advertising. Timothy sells each 16-ounce bottle of Hair-Again for $15 and pays a commission of 3 percent of sales to telephoneoperators who field the 1-800 phone calls from potential customers. Fixed marketing expenses for each quarter of the coming year include: Internet banner ads $7,600Telephone operator time 4,000Travel 3,000 In addition, early next year Timothy intends to film and show infomercials on television. Heexpects the cost to be $10,000 in quarters 1 and 2, and that the cost will rise to $25,000 in eachof quarters 3 and 4. Timothy expects the following unit sales of Hair-Again:Quarter 1 5,000Quarter 2 15,000Quarter 3 40,000Quarter 4…
Juan Fox’ has started her own company, Foxy Jeans, which manufactures imprinted jeans. Since he just begun this operation, he rents the equipment from a local printing shop when necessary. The cost of using the equipment is P3,000. The materials used in one jean cost P200, and he can sell it at 350. Requirements: Provide for a mathematical model that will show how to maximize the profit. IF Juan sells 100 jeans, what will his total revenues, total costs, and profit? How many jeans must Juan sell to have zero profit and zero loss (break-even)?
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Sam's Auto Shop services and repairs a particular brand of foreign automobile. Sam uses oil filters throughout the year. The shop operates 52 weeks per year and weekly demand is 130 filters. Sam estimates that it costs $20 to place an order and his annual holding cost rate is $3 per oil filter. Currently, Sam orders in quantities of 650 filters. Calculate the total annual costs associated with Sam's current ordering policy. Total annual costs = $
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Mere Mang Eduard operates a buy and sell business. He sells umbrellas in his shop near the city mall. He gets his umbrellas from a local dealer. Each umbrella costs 90.00 pesos each. Expecting rainy season to come, Mang Eduard purchased 4 dozens of umbrellas every week. The supplier theh charges 200.00 pesos per dozen for freight. Mang Eduard can sell 12 umbrellas every day. Remember to use the factors to consider in projecting revenues and refer to tables 4, 5 and 6 as your guide. Suppose Mang Eduard purchases and sales is the same every month, fill in the necessary information in table 6. Mom Table 4 Cost Projected Cost of Goods Sold (Monthly) Goods Projected Volume Expens Total Cc Merchandise/ Cost per Unit Average No. of Projected Costs of Expens Products Items Sold (Monthly) Purchases (Monthly) (A) F = (D x 30 days) J= (A x F) Month Cost o 06 Goods S Expense Total Total Cost Expenses
You make Fidget Spinners that you can sell for $6.50 each. The materials that go into each fidget spinner include ball bearings ($1.25/unit), and plastic ($0.15/unit). Your other costs are as follows: $0.10/unit of injection molding costs You pay your little brother 5% commission on each unit he sells. $100 per month for a social media advertising campaign $3600 per year that your parents are charging you to use the garage $3000/month to cover the salaries for you and two of your best friends who are all equal partners in this business. Because you are using the garage, you are also required to purchase car covers upfront for each of your parent's cars. This totals $750. You also need to purchase injection molds for $1500. What is the minimum number of Fidget Spinners you must sell per month to breakeven?
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