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Joe from Joe's Mowers wants to make some changes to his business. He has asked each of his department managers (Production, Marketing and Sales) to
Joe from Joe's Mowers wants to make some changes to his business. He has asked each of his department managers (Production, Marketing and Sales) to submit a plan for growth to you the General Manager. Currently Joe is selling 500 lawn mowers a month at $250 each. His variable cost per lawnmower is $160 each. His fixed cost per month are $ 28,000. The Marketing Department is considering three different alternatives. A. Do $5,000 in advertising. The Marketing department believe this would increase sales by at least 35 units. B. Do $10,000 in advertising. The Marketing department believe this would increase sales by at least 65 units. C. Do $ 6,000 in advertising combined with a "sales" price of $225 (a 10% discount). The believe that this would increase sales by at least 54 units. Question 6. How much money will Joe make in each of the separate situations? Question 7. Which of the scenarios is best and why
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