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Parisian Cosmetics Company is planning a one-month campaign for September to promote sales of one of its two cosmetics products. A total of $140,000 has
Parisian Cosmetics Company is planning a one-month campaign for September to promote sales of one of its two cosmetics products. A total of $140,000 has been budgeted for advertising, contests, redeemable coupons, and other promotional activities. The following data have been assembled for their possible usefulness in deciding which of the products to select for the campaign: 2. The sales manager had tentatively decided to promote perfume, estimating that operating income would be increased by $80,000 ( $11 operating income per unit for 20,000 units less promotion expenses of $140,000 ). The manager also believed that the selection of moisturizer would reduce operating income by $8,000 ( $6 operating income per unit for 22,000 units less promotion expenses of $140,000 ). State briefly your reasons for supporting or opposing the tentative decision. Differential Analysis Promote Moisfurizer (Alt 1 ) nr Promnta Darfume (Alt o) [Key essay answer here]
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