Mark from Mark'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 Mark is selling 500 lawn mowers a month at $240 each. His variable cost per
lawnmower is $175 each. His fixed cost per month are $ 25,000.
For purposes of this project assume that each scenario is within the relevant range (no larger space
is needed, no additional people will be needed and no additional fixed cost will be necessary.

***USE EXCEL***

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 Mark make in each of the separate situations? Question 7. Which of the scenarios is best and why? The Sales Department is also considering three different alternatives. A. Offer a commission of $ 5 per mower to the sales force. They believe that this will increase sales by at least 24 units. B. Offer a commission to the sales force of $15 per mower. They believe that this will increase sales by at least 35 units per month. C. Offer a commission of $ 25 per mower and increase the cost of the mower by $10. Even with the higher price, they believe it would increase mower sales by at least 40 mowers per month. Question 8. How much money will Mark make in each of the separate situations? Question 9. Which of the scenarios is best and why?