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1 . You have a small business selling cans of 3 2 1 LGB , a reasonably nasty - tasting energy drink. You sell each
You have a small business selling cans of LGB a reasonably nastytasting energy drink. You sell each can of LGB for $ Each can costs you $ to purchase from the manufacturer. You pay your salesperson a commission on all sales on top of a base salary of $ per month. Your rent is $ per month. Other miscellaneous costs insurance utilities, etc. average $ per month. You are pretty sure you can sell cans per month at the $ price point.A How many cans do you need to sell to breakeven each month round up to the nearest whole canB How much monthly operating income will you have if you sell cans per month?C If tax rates are how much net income will you make if you sell cans?You are considering offering a off coupon for each can to increase sales. You think sales will increase to cans per month assuming each can will be purchased with a coupon A fixed coupon processing fee of $ will be incurred each month if you choose this strategy.D How many cans will you need to sell each month to breakeven with the coupon strategy? Assume sales commissions will still be based on the $ "listprice."E How much monthly income will you have if you sell cans each month with this coupon strategy?Another option you are considering involves spending $ per month on an advertising campaign. You think that you can raise monthly sales to cans at an undiscounted sales price of $ie no coupons, etc.F How many cans will you need to sell each month to breakeven with the advertising strategy round up to the nearest whole canG How much monthly operating income will you have if you sell cans each month with the advertising strategy?Which strategy would be best if you thought you could sell cans per month either with the coupons or the advertising? In other words:H How much income would you make with the coupon strategy if you were able to sell cans per month?I. How much would you make with the advertising strategy if you were able to sell cans per month?Open Word
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