Question
Bobs Burgers had sales of $5,000,000 last year and cost of goods of $2,500,000. The entire burger industry has sales of $50,000,000. Furthermore, Bob's
Bobs Burgers had sales of $5,000,000 last year and cost of goods of $2,500,000. The entire burger industry has sales of $50,000,000. Furthermore, Bob's Burgers spent $10,000 for marketing last year, while the industry as a whole spent $70,000. Suppose Bob's Burgers wanted to increase their market share by an additional 4%. Using share point analysis, how much additional profit would they make and how much additional money would they need to spend on marketing to achieve this?
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