A company typically sells 100,000 units at $10 per unit. It runs a promotion that discounts each unit by $2 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 $2 per unit. To promote the discount, the company pays a flat fee of $75,000. 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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Authors: George H. Pink, Paula H. Song
7th Edition
1640553177, 978-1640553170
