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must answer parts 1,2,3 correctly and completely. only answer if you know the correct formatting and give valid answers please! LO6 Sell or Process-Further Decision
must answer parts 1,2,3 correctly and completely. only answer if you know the correct formatting and give valid answers please!
LO6 Sell or Process-Further Decision P 10. Marketeers, promootional program for a large shopping cen er in Sunset Inc a years ago. the Living, Arizona, a oping original promotion with add-on campaign, the firm is ready to present its client a advertising contract offer that the original promotion areas of campaign, sented BIG schedule for 10 of the 28 center. Pre below tenants hopping the revenue terms from the original contract with the shopping cen ter and the offer for the add-on contract, which extends the original contract terms. Extended Contract Original Contract Including Add-On Terms Terms TV advertising campaign 580,000 $520,000 Brochure series 230,000 210,000 Rotating BIG SALE schedule Totals 190,000 170,000 S1,000,000 $900,000 Marketeers, Inc., estimates that the following additional costs will be incurred by extending the contract BIG SALE TV Campaign Brochures Schedule Direct labor $7,000 $30,000 9,000 Variable overhead costs 22,000 14,000 6,000 Fixed overhead costs 12,000 4,000 2,000 80 percent are direct fixed costs applied to this contract Required l. Compute the costs that will be incurred for each part of the add-on portion of the contract insight 2. Should Marketeers, Inc., offer the add-on contract, or should it ask for a final settlement check based on the original contract only? Defend your answer 3. If management of the shopping center indicates that the terms of the add-on insight contract are negotiable, how should Marketeers, Inc., respondStep by Step Solution
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