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please help with both Suppose that the manufacturer's selling price is $5.00, its variable cost is $3.50, and it is offering a $0.50 coupon for
please help with both
Suppose that the manufacturer's selling price is $5.00, its variable cost is $3.50, and it is offering a $0.50 coupon for one month. The manufacturer distributes 20,000 coupons and expects 3% of coupons distributed to be redeemed. The costs of producing and distributing coupons equal $2,000. It projects to sell total 5,500 units during the month the coupons are used. The average sales is 4,500 units per month and the company does not expect a decrease in sales after the coupon promotion. What is its contribution after the coupon promotion? Select one: O a. $3,500 O b. $5,950 O c. $6,250 O d. $5,500 Suppose that a manufacturer's selling price is $5.00, its variable cost is $3.50, and it is offering a $0.50 coupon. What is its unit contribution from purchases made with a coupon? Select one: O a. $1.50 b. $3.00 c. $1.00 O d. $4.50 Clear my choice Step by Step Solution
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