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A men's fragrance manufacturer plans on offering a FREE premium for every purchase of its most popular product. The premium being considered costs $2.00 per
A men's fragrance manufacturer plans on offering a FREE premium for every purchase of its most popular product. The premium being considered costs $2.00 per unit. Historical records show that this type of promotion typically doubles the product's average monthly sales. On an average month, the product being considered for sales promotion sells 8,000 units and its unit contribution at full price is $5.00. However, historical records show that sales for the month after a premium promotion is 20% lower than the average. What is the contribution after promotion of this premium promotion? Select one: a. $80,000 b. $60,000 c. $40,000 d. $0 Suppose that the manufacturer's selling price is $5.00, its variable cost is $3.50, and it is offering a $0.50 coupon for one month. The manufacturer distributes 20,000 coupons and expects 3% of coupons distributed to be redeemed. The costs of producing and distributing coupons equal $2,000. It projects to sell total 5,500 units during the month the coupons are used. The average sales is 4,500 units per month and the company does not expect a decrease in sales after the coupon promotion. What is its contribution after the coupon promotion? Select one: a. $5,950 b. $3,500 c. $5,500 d. $6,250 A men's fragrance manufacturer plans on offering a FREE premium for every purchase of its most popular product. The premium being considered costs $2.00 per unit. Historical records show that this type of promotion typically doubles the product's average monthly sales. On an average month, the product being considered for sales promotion sells 8,000 units and its unit contribution at full price is $5.00. However, historical records show that sales for the month after a premium promotion is 20% lower than the average. What is the contribution after promotion of this premium promotion? Select one: a. $80,000 b. $60,000 c. $40,000 d. $0 Suppose that the manufacturer's selling price is $5.00, its variable cost is $3.50, and it is offering a $0.50 coupon for one month. The manufacturer distributes 20,000 coupons and expects 3% of coupons distributed to be redeemed. The costs of producing and distributing coupons equal $2,000. It projects to sell total 5,500 units during the month the coupons are used. The average sales is 4,500 units per month and the company does not expect a decrease in sales after the coupon promotion. What is its contribution after the coupon promotion? Select one: a. $5,950 b. $3,500 c. $5,500 d. $6,250
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