Kal Stephens recently opened a moblle dog grooming business named Waggin' Clean in the Dallas suburb of Frisco, TX. As a relatively new competitor in the market, Kal knows that he must find more customers qulckly li his business is going to survive. There are many competitors in the Dallas market with service prices ranging between $40 and $100. To position his business competitively, Kal has decided to charge $60 for his dog grooming services. Kars business has fixed monthly expenses of $2000 which covers his salary and the payment on his moblle grooming van. Additionaliy, Kal has variable expenses of $20 per service for his supplles, varlable labor expenses, and gas. Even with his competitive price, Kal's business is not reaching its potentlal. Kal has the ablily to service 8 canine clients per day, 6 days a week, which results in approximately 192 potentlal dog services per month. Unfortunately, Kal is only booking 4 grooming appointments on average each day. Kal knows he needs to do some marketing to increase his cllent base. To increase his bookings, Kal is deciding between two different promotional marketing campaigns. Kal is deciding between running an advertisement in a local Dallas magazine and creating a $10 orf coupon direct mall campalgn. The magazine ad Kal is considering has an advertising cost of $1000 while the advertising cost for the direct malling is $500. Based on his research, Kal belleves that the magazine advertisement would result in a 25 percent increase in customers (120 customers per month) whille the direct mall coupon would result in a 55 percent increase in customers (150 customers per month). The goal of this activity is to understand the pront equation and the relationship between sales, revenue, and costs. Keep in mind that: Pront = Total Revenue Total Costs. Total Revenue (TR)= Price (P)Q Quntity Sold (Q). Refer to the formulas above ano the spreaosheet below to help answer the questions that follow. The spreadsheet fieios highighteo in yellow can be changed in order to determine possibie outcomes. You can fino the intial values in the corresponcling biue cells in columns E to G. Start by entering the intial values into columns B to D. Then review the questions below and adjust the values in columns B to D to determine the correct answers. 1. Based on the data provided in the marketing dashboard, what type of promotional marketing effort, If any, should Kal invest in to Increase the number of canine customers and proft? 2. Kal feels strongly that putting a coupon in the market will dllute the percelved value of his services, so he really wants to pursue the magazine advertising option. Kal can change the size of the ad which will affect the cost and the effectiveness of the ad. Which combination of advertising cost and responsiveness (number of new customers) maximizes his profit? 3. Another option that Kal could consider is changing the value of the coupon. Not surprisingly, the larger the coupon, the more customers Kal can expect. A $2 coupon gets him 120 cllents per month, a $5 coupon gets him 135 cilents per month, a $10 coupon gets him 150 clents per month, a $15 coupon gets him 175 clents per month, and a $20 coupon gets him 200 clents per month. Which customericoupon combination maximizes Kal's pronts? 4. To maximize his pront, Kal should adopt which of the following strategles? 5. Instead of utilizing a promotional marketing tactic, Kal has decided to change the price of his product in an effort to increase his customer base and maximize his profit. The lower the price, the more customers Kal can expect to attract. Which customeriprice combination will maximize Kal's profit? Kal Stephens recently opened a moblle dog grooming business named Waggin' Clean in the Dallas suburb of Frisco, TX. As a relatively new competitor in the market, Kal knows that he must find more customers qulckly li his business is going to survive. There are many competitors in the Dallas market with service prices ranging between $40 and $100. To position his business competitively, Kal has decided to charge $60 for his dog grooming services. Kars business has fixed monthly expenses of $2000 which covers his salary and the payment on his moblle grooming van. Additionaliy, Kal has variable expenses of $20 per service for his supplles, varlable labor expenses, and gas. Even with his competitive price, Kal's business is not reaching its potentlal. Kal has the ablily to service 8 canine clients per day, 6 days a week, which results in approximately 192 potentlal dog services per month. Unfortunately, Kal is only booking 4 grooming appointments on average each day. Kal knows he needs to do some marketing to increase his cllent base. To increase his bookings, Kal is deciding between two different promotional marketing campaigns. Kal is deciding between running an advertisement in a local Dallas magazine and creating a $10 orf coupon direct mall campalgn. The magazine ad Kal is considering has an advertising cost of $1000 while the advertising cost for the direct malling is $500. Based on his research, Kal belleves that the magazine advertisement would result in a 25 percent increase in customers (120 customers per month) whille the direct mall coupon would result in a 55 percent increase in customers (150 customers per month). The goal of this activity is to understand the pront equation and the relationship between sales, revenue, and costs. Keep in mind that: Pront = Total Revenue Total Costs. Total Revenue (TR)= Price (P)Q Quntity Sold (Q). Refer to the formulas above ano the spreaosheet below to help answer the questions that follow. The spreadsheet fieios highighteo in yellow can be changed in order to determine possibie outcomes. You can fino the intial values in the corresponcling biue cells in columns E to G. Start by entering the intial values into columns B to D. Then review the questions below and adjust the values in columns B to D to determine the correct answers. 1. Based on the data provided in the marketing dashboard, what type of promotional marketing effort, If any, should Kal invest in to Increase the number of canine customers and proft? 2. Kal feels strongly that putting a coupon in the market will dllute the percelved value of his services, so he really wants to pursue the magazine advertising option. Kal can change the size of the ad which will affect the cost and the effectiveness of the ad. Which combination of advertising cost and responsiveness (number of new customers) maximizes his profit? 3. Another option that Kal could consider is changing the value of the coupon. Not surprisingly, the larger the coupon, the more customers Kal can expect. A $2 coupon gets him 120 cllents per month, a $5 coupon gets him 135 cilents per month, a $10 coupon gets him 150 clents per month, a $15 coupon gets him 175 clents per month, and a $20 coupon gets him 200 clents per month. Which customericoupon combination maximizes Kal's pronts? 4. To maximize his pront, Kal should adopt which of the following strategles? 5. Instead of utilizing a promotional marketing tactic, Kal has decided to change the price of his product in an effort to increase his customer base and maximize his profit. The lower the price, the more customers Kal can expect to attract. Which customeriprice combination will maximize Kal's profit