Marketing Management

Sony Eye Toy Assignment

TEAM ID: _____________________________________

Instructions

1. The assignment has two questions. Both questions must be answered.

2. The points allocated to each question are indicated next to the question. Total
points add up to 50.

3. Assignment is due at Midnight on Friday, April 28, 2017.

4. Last page has hints for question 2.

1
 Break Even Point: Eye Toy Play (mention source, where applicable)
25 Points

Eye Toy Play

Fixed Costs

1.

2.

Total Fixed Costs

Variable Costs

1.

2.

3.Camera (minimum 250,000 units)

Total Variable Costs

Price per Unit to Trade (Revenue for Sony)

Margin of Sony per unit in Euros

Break Even Units

Street Price per Unit (Price to Consumers)

VAT in Euros

Margin for Trade in Euros

2
 1. Break Even Point: Groove (mention source where applicable - for
assumptions and hints, see next page)
25 Points

Eye Toy Groove

Fixed Costs

1.

2.

Total Fixed Costs

Variable Costs

1.

2.

Total Variable Costs

Price per Unit to Trade (Revenue for Sony)

Margin of Sony per unit in Euros

Break Even Units

Street Price per Unit (Price to Consumers)

VAT in Euros

Margin for Trade in Euros

3
 Assumptions and Hints for Eye Toy Groove:

a. Assume that the fixed advertising expenses are half that of Eye Toy Play.
b. Assume that the two variable costs are the same as that of Eye Toy Play.
c. To calculate per unit revenue assume that the % trade margin for Play and
Groove is the same.

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