Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Let's modify the scenario from Q1 and Q2 a bit. Management estimates that the incremental promotion program required to generate sufficient demand to boost sales

image text in transcribed
image text in transcribed
Let's modify the scenario from Q1 and Q2 a bit. Management estimates that the incremental promotion program required to generate sufficient demand to boost sales by 20% will need to be: Marketing Costs $ 60,000 (exclusive of commissions) Consumer Advertising $ 63,122 Trade Promotion S 41.324 Sales Promotion S 25,000 The total market for craft beer sold in six packs is about 2.500.000 six packs per year. How much market share will shannon's need to acquire in order to break even on the incremental costs that are anticipated? Express your answer in percent format to two decimal places. For example, 5.00 for five percent or 50 for one-half of one percent. Do not include the percent sign. Assume that price and variable costs per six-pack remain the same as in Q2 Shannon's distributes its beer through a wholesaler, Miller of Denton. The retail selling price for a six- pack of its typical craft beer is $12.00. The retailer's cost per six-pack is $8.00. The wholesaler sells the beer to the retailer for this price. Shannon's sells a six-pack to the wholesaler for $5.40. Shannon's variable costs of production packaging, and distribution are $3.60 per six-pack. Shannon's has the following annual fixed operating and marketing costs: Let's modify the scenario from Q1 and Q2 a bit. Management estimates that the incremental promotion program required to generate sufficient demand to boost sales by 20% will need to be: Marketing Costs $ 60,000 (exclusive of commissions) Consumer Advertising $ 63,122 Trade Promotion S 41.324 Sales Promotion S 25,000 The total market for craft beer sold in six packs is about 2.500.000 six packs per year. How much market share will shannon's need to acquire in order to break even on the incremental costs that are anticipated? Express your answer in percent format to two decimal places. For example, 5.00 for five percent or 50 for one-half of one percent. Do not include the percent sign. Assume that price and variable costs per six-pack remain the same as in Q2 Shannon's distributes its beer through a wholesaler, Miller of Denton. The retail selling price for a six- pack of its typical craft beer is $12.00. The retailer's cost per six-pack is $8.00. The wholesaler sells the beer to the retailer for this price. Shannon's sells a six-pack to the wholesaler for $5.40. Shannon's variable costs of production packaging, and distribution are $3.60 per six-pack. Shannon's has the following annual fixed operating and marketing costs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Karen Wilken Braun, Wendy M. Tietz

2nd Custom Edition

1269396803, 978-1269396806

More Books

Students also viewed these Accounting questions

Question

Evaluate the integrals. 1-2 (ui+uj) du

Answered: 1 week ago

Question

Briefly describe Kants theory of moral development.

Answered: 1 week ago

Question

Describe reviewing applications and rsums.

Answered: 1 week ago

Question

Identify the uses of performance appraisal.

Answered: 1 week ago

Question

Discuss selection in a global environment.

Answered: 1 week ago