MINI-CASE Coller Inc.is an American Firm That Manufactures Flat Panel LCD

question 19

Multiple Choice

MINI-CASE
Coller Inc.is an American firm that manufactures flat panel LCD computer monitors.The firm has a 5% share of a 2 million unit market.The firm's marketing department calculates that its acquisition cost is $13 million and retention costs is $5 million.The market for flat panel LCD computer monitors is in the late growth stage of the product life cycle,and Coller currently sells its product for $2,000 and experiences variable costs per unit of $1,600.
-Mini-Case Question.If Coller Inc.has a gross profit of $40 million,what is its net marketing contribution?

• A)$2 million
• B)$2.5 million
• C)$22 million
• D)$250,000
• E)$160,000

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Definitions:

Maturity Date

The maturity date is the specified date on a financial instrument at which the principal (or final payment) is due to be paid to the holder.

Retained Earnings

The portion of a company's net income that is not distributed to shareholders as dividends but is retained by the company to reinvest in its core business or to pay debt.

Accounts Payable

The amounts owed by a business to its suppliers or creditors for goods and services received but not yet paid for.