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A brand is choosing between two sales promotions, a price discount and a buy one get one free (BOGO) offer. On the one hand, if
A brand is choosing between two sales promotions, a price discount and a buy one get one free (BOGO) offer. On the one hand, if the brand offers 25% off the regular price (25 OFF) and invests $4,000 in retail trade support (e.g. advertising), it can increase its average unit sales by 30%. On the other hand, a BOGO offer triples the brand's average unit sales (excluding the free items) but requires $6,000 for display allowances. Both promotions will run for a month. On months without sales promotion, the brand sells an average of 10,000 units. Its manufacturer's selling price is $5.00 and its variable cost is $2.00. On months without sales promotions, what is the brand's unit contribution? Select one: O a. $5.00 O b. $2.50 O c. $3.00 O d. $2.00 On months without sales promotions, what is the brand's total contribution? Select one: O a. $30,000 O b. $25,000 c. $20,000 O d. $50,000 If the brand offers a 25% discount, what is the brand's unit contribution? Select one: O a. $1.75 O b. $1.25 O c. $2.00 O d. $3.75 If the brand offers a 25% discount, what is the contribution after promotion? Select one: O a. $26,000 O b. $22,750 O c. $18,750 O d. $13,500
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