Golden Rings Inc. sells bags of onion rings to consumers. In June 2019, they sold 55,023 bags at a price of $3.99. Competitor A sold 23,457 bags at a price of $3.49 and Competitor B sold 101,792 bags

BUSI 2231
Marketing Math Assignment
Due No Later Than 6pm AST on July 17, 2019
Answer all the questions below. You are required to show all calculations.
1. Golden Rings Inc. sells bags of onion rings to consumers. In June 2019, they sold 55,023 bags at a price of $3.99. Competitor A sold 23,457 bags at a price of $3.49 and Competitor B sold 101,792 bags at a price of $3.89.
a. Which is Golden Rings Inc. market share in units?
b. What is Golden Rings Inc. market share in dollars?
2. In 2016, 237,698 pizza pockets were consumed. Children aged 2 – 18 consumed 169,333 pizza
pockets while adults consumed the remainder. In 2017, 202,572 pizza pockets were consumed.
Children aged 2 – 18 consumed 112,631 pizza pockets while adults consumed the remainder. In
2018, 245,717 pizza pockets were consumed. Children aged 2 – 18 consumed 130,984 pizza
pockets while adults consumed the remainder.
a. What are the consumption rates of each group in each year?
b. What are the growth rates for the industry and each group in 2017 and 2018?
3. Zany Soaps can make 500 bars of soap each month. The company sells 200 bars of soap at the
farmers market monthly at a price of $2.00. Another 100 bars of soap are sold to a local
business each month at a price of $1.50. The other 200 bars are sold each month to a small
company in another province at a price of $1.75. Zany Soaps fixed monthly cost is $75 and their
variable cost is $0.20 per bar of soap.
a. What is Zany Soaps monthly sales revenue?
b. What is Zany Soaps monthly total cost?
c. What is Zany Soaps monthly net profit?
d. What is Zany Soaps profit margin?
4. A toy company is looking at three different promotional plans to evaluate which plan they
should pursue. Scenario A would see no change to the promotional plan. Scenario B would
include a sales promotion providing customers with a reduced price of $4.25 when they
purchase 10 or more toys. Scenario C would sell all toys at the regular price of $5.00 but would
include an increased advertising spend of $0.50 per toy.
a. Complete the following table.
b. Which scenario would you recommend if the objective was:
i. Revenue Maximization
ii. Volume (unit) Maximization
iii. Profit Maximization
iv. Profit Margin Maximization
Scenario A Scenario B Scenario C
Toys Sold @ Regular Price (units) 90,000 50,000 100,000
Toys Sold at Promotional Price (units) 0 60,000 0
Total Toys Sold 90,000 110,000 100,000
Regular Price Per Toy $5.00 $5.00 $5.00
Promotional Price Per Toy $4.25
Total Fixed Costs $100,000 $100,000 $100,000
Average Variable Cost Per Toy $1.00 $1.00 $1.00
Average Variable Promotional Cost Per Toy $0.75 $0.75 $1.25
Total Variable Cost Per Toy $1.75 $1.75 $2.25
Total Revenue
Total Fixed Costs
Total Variable Costs
Total Cost
Total Profit
Profit Margin %
5. Lily’s Photos buys pictures frames from a manufacturer for $11 each. If she sells the frames for
$35,
a. What is her markup?
b. What is her gross margin percentage?
c. What will her retail price be if she uses a target markup on cost of 150%?
d. If she sells her frame for $30 and she wants a target markup on cost of 150%, what cost
does she need from her supplier?

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