Mettel products sells 100,000 flash drives annually to industrial distributors who resell the drives to business customers for $40 each. the distributors’ margins are 25%. mettel products’ cost of goods sold is $10.00 each. mettel’s total variable costs (including selling costs) are $15.00 per drive. what is the gross margin (in percentage) enjoyed by mettel products on its drives? [note: a firm’s margin on a product is typically calculated as a percentage of the firm’s selling price.] mettel is considering increasing its annual advertising spending from $75,000 to $150,000. how many additional flash drives would it need to sell in a year in order to break-even? now if instead of increasing its advertising spending, mettel decides to reduce its price by $3 per drive, how many additional units would it need to sell in order to break even?

Instructions are listed below.

Explanation:

Giving the following information:

Mettel Products sells 100,000 flash drives annually to industrial distributors who resell the drives to business customers for $40 each. The distributors’ margins are 25%. Mettel Products’ cost of goods sold is $10.00 each. Mettel’s total variable costs (including selling costs) are $15.00 per drive.

Selling price= 40/1.25= $32

A) Gross margin= 32 - 15= 17

%= 53%

B) Mettel is considering increasing its annual advertising spending from $75,000 to $150,000.

Break-even point= fixed costs/ contribution margin

Break-even points= 150,000/17= 8,824 units

C) Break-even points= 75,000/14= 5,357 units

The correct answer is all of the above.

Explanation:

Solution

When a client is not happy with the work of the former Engineer A on his project, if he hires Engineer B to finish the work, the new Engineer must take into consideration the past work of his predecessor.

He has to check the overall work manual of the previous engineer, so as to input his own idea to make the work much better and satisfactory for the client.

He (Engineer B) should be able to keep track in documenting his or her effort while redoing the entire design process stage.

He can also asked questions from the previous Engineer in case he his not understanding dome things or facing some issues towards the project work.

The four option here, are correct