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Consider four price promotion campaigns, where all three periods are of the same duration (3 weeks). The selling price per unit is $5, and the

Consider four price promotion campaigns, where all three periods are of the same duration (3 weeks). The selling price per unit is $5, and the contribution per unit is $3.

Week

sales (Campaign 1)

sales (Campaign 2)

sales

(Campaign 3)

sales (Campaign 4)

Baseline

1

969

969

929

1098

2

979

1269

779

1249

3

1349

1139

1039

1229

Promotion

5

1269

2119

1869

2359

6

1539

1639

1679

2379

7

1600

2209

1749

2419

Post promotion

9

1000

600

1078

450

10

1400

700

1100

700

12

1200

450

1209

250

Based on the information contained in the above table and considering that there is 20% price deduction for the Campaign 4, calculate the net contribution to profit (contribution foregone from baseline sales and contribution from incremental sales) and evaluate whether the price promotion is profitable for the Campaign 4

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