00:01
Hi, today we are solving the question in which net sales is given by market demand into market share into average selling price into 1 minus channel discount.
00:18
So here on substituting the values we get it as 22 ,000 ,000 into 0 .25 into 50 into 1 minus 0 .60.
00:37
So net sales we get as $11 ,000 ,000.
00:52
So from here, therefore required net sales will be $11 ,000 ,000.
01:07
Now taking the gross profit, gross profit is equals to net sales into average margin gross profit.
01:22
So here net sales is 11 ,000 ,000 into 0 .40.
01:34
So we get it as 4 ,400 ,000.
01:46
So therefore gross profit will be equal to 4400, $4400 ,000.
02:03
Now calculating the net market contribution.
02:08
So net market contribution is net marketing contribution is equals to gross profit minus cost of marketing and sales.
02:22
So here gross profit is 4400 ,000 minus cost of marketing and sales.
02:33
That is 3500 ,000.
02:37
So on solving it, we get it as equals to $90 ,000...