Chemical compounding $1.25/bottle
Packaging $0.35/bottle
Developer Royalties $1.00/bottle
Advertising/promotion $675,000
Vitagen overhead $500,000
Selling price per bottle to distributor $9.00
Based on the above numbers, calculate the following:
a. contribution per bottle
b. break-even volume in bottle and dollars
c. net profit if 1 million bottles are sold
d. necessary unit volume to achieve a $200,000 profit