Question
Frodo-Lay has a line of potato snacks named Spicy Curls. The snacks are solid in10 ounce packages at a profit of $0.50 per package. Sales
Frodo-Lay has a line of potato snacks named Spicy Curls. The snacks are solid in10 ounce packages at a profit of $0.50 per package. Sales of Spicy Curls havebeen stable at 100,000 per year and are expected to continue at this level in futureunder present circumstances..Marketing is considering two possible advertising campaigns: a local campaign for$10,000 and a regional campaign for $100,000. Projections have been made forsales under each campaign: 100K (probability local: 0.3, probability regional: 0.1),200K (0.4, 0.2), 300K (0.1, 0.2), 400K (0.1, 0.2), and 500K (0.1, 0.3).There is sufficient production capacity to maintain the current profit margin for atleast 500K units.What is the EV for no advertising campaign? 10 points Save Answer Question 2 (1b) What is the EV for the local campaign? 10 points Save Answer Question 3 (1c) What is the EV for the regional campaign? 10 points Save Answer Question 4 (1d) Which marketing campaign should be proposed? Other Local None Regional 10 points Save Answer Question 5 (1e) At what profit per package would there be indifference between the local and regional marketing campaigns? (At least 3 decimal places.)
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