|Classic knitwear questions: |
|Does the “ product” fit Classic’s needs and capabilities? |
|What sales volume will break even on Classic’s 2-year investment and what is the |
|estimated demand for the new line over the 2yr launch? |
|What problems do you see in the proposed marketing program? |
|The major problem with the marketing plan is lack if research to indentify a viable |
|target market for the product. |
|Construct a “positioning” statement for “Guardian” line. |

1. In order for Classic Knitwear to …show more content…

|
|Licensing Fee |$100,000 |
|Cost of product displays |$1,000,000 |
|Salary expense for new sales reps over 2 years |$510,000 |
|Marketing expense |$3,000,000 |
|Guardian Royalty |5% of sales |
|Advertising Allowance |10% of sales X 20% taking advantage of program |
| | |
|Set expenses = sales to calculate sales needed to break | |
|even: | |
|$4,956,989.25 |
|Assuming average manufacturing sales price $17.87 (as given