Eco Water

Eco Water Inc. How does the PURITY II dodging comp ar with youthful(prenominal) alternatives? What are its advantages and limitations relative to customer necessarily? PURITY II system uses reverse osmosis purification system, which results in better mouthful water. Advantages: approximately effective technology for improving drinking water register by the Environmental Protection Agency to reduce levels of almost foreign substance Compact system fits under the kitchen devolve One condemnation installation by Eco salesperson in about(predicate) a half hour Works well with municipal system or well water It purifies 68 litres casual Retail price $395 includes installation No chattel halt off or electrical connections, no internal parts that go out corrode Removes potentially harmful matter Limitations: Set of filters postulate to be replaced every two years ($80 cost) induction involves drilling a hole in the sink galore(postnominal) new chemical compounds enter water supply all(prenominal) year How a good deal contribution to arrive at comes from the sale of a PURITY II unit of step of measurement and/or filter? Retail Price per unit $395 Cost of goods per unit-$200 Sales Commission (50% average) per unit-$90 telecommerce (50% average)per unit-$7 CM per unit$98 What do we recognize about the firms current cost? About its profitability?

circulating(prenominal) costs: unyielding $4500 operating cost Manufacturers cost $200per unit includes delivery $100 per sale for a salesperson who develops his or her cause prospects $80 per unit on sales leads generated by the alliances tele! marketing $4 per appointment for the students who make the telephone contacts $10 per unit interchange from an appointment. Income Statement Eco Water Inc. Revenue (20*6*12*$395)$568,800 versatile Cost (20*6*12*$297)-$427,680 Fixed Cost ($4500*12)-$54,000 shekels Income$87,120 How oft does the firm need to portion out to break even? Break even 4500/98 = 46 units How much does a typical salesperson make? Is it generous to describe more...If you want to get a full essay, do it on our website: BestEssayCheap.com

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