Question
A company typically sells 100,000 units at $10 per unit. It runs a promotion that discounts each unit by $3 per unit. To promote the
A company typically sells 100,000 units at $10 per unit. It runs a promotion that discounts each unit by $3 per unit. To promote the discount, the company pays a flat fee of $50,000. The company sells 50,000 additional units in incremental sales.
What is the cost of this promotion?
Should the company proceed with this promotion and discount?
Why or why not?
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Essentials Of Health Care Finance
Authors: William O. Cleverley, James O. Cleverley, Paula H. Song
7th Edition
0763789291, 978-0763789299
