Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Parisian Cosmetics Company is planning a one-month campaign for September to pro- mote sales of one of its two cosmetics products. A total of $140,000

image text in transcribed
Parisian Cosmetics Company is planning a one-month campaign for September to pro- mote 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: No increase in facilities would be necessary to produce and sell the increased output. It is anticipated that 22,000 additional units of moisturizer or 20,000 additional units of perfume could be either sold from the campaign without changing selling prize of product. Prepare a differential analysis as of August 21 to determine whether to promote mois-tuzier (alternative 1) or perfume The sales manager had tentatively decide 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 believed that income per unit for would reduce operating The manager are believed that the section of moisturizer would reduse operating income by $8.000($6 operating per unitfor 22,000 units, less promotion expenses $140,000), state briefly your reason for supposing or opposing the tentative of decision

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

More Books

Students also viewed these Accounting questions

Question

Discuss the history of human resource management (HRM).

Answered: 1 week ago