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Given the above information in Q 1 , ?Shannon's wants to increase its sales to retailers by 2 0 % ?in the next year. Management
Given the above information in Q ?Shannon's wants to increase its sales to retailers by ?in the next year. Management estimates that the incremental promotion program required to generate sufficient demand to boost sales by ?will be:
Personal Selling Costs $ $ exclusive of commission
Consumer Advertising
$
Trade Promotion
$
Sales Promotion
$
Shannon's will need to hire an additional salesperson paid a salary and commission ?and provide some added administrative support. The salesperson's salary plus administrative support will cost about $ ?per year. The salesperson's commission will be the equivalent of $ ?per six pack sold. Unit variable costs, exclusive of the salesperson's commission, are the same as in Q ?The incremental costs of consumer advertising, trade promotion, and sales promotion necessary to support sales in the new market will be substantial, as indicated in the table above. How many sixpacks must be sold to break even on the incremental costs that are anticipated?
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