PQ#1. Suppose that Brand Zs monthly average sales is 1,800 units. Brand Zs retail selling price is $2.50 and its cost of production is $0.50. Historical sales show that if Brand Z offers a Buy One Get One Free (BOGO) promotion, unit sales increase by 300% (excluding the free products). Using the information given, find the following:

1. How much dollar sales does the promotion generate?

2. What is the total contribution generated by the promotion?

3. Based on total contribution, should Brand Z continue with the BOGO promotion?

PQ#2. Brand Z (in PQ#1) is planning a Buy Two Get One Free (B2GO) promotion in the coming month. Historical sales show that this type of promotion increases unit sales by 180% (this includes the free products). In addition, previous sales promotions of this type show that 30% of the unit sales are scanned as free products. Based on contribution, should Brand Z continue with the BOGO promotion?

PQ#3. Historical sales show that if Brand Z in PQ#1 above has a Buy Two for $2.50 promotion, unit sales increase only by 800 units. Approximately 40% of the total unit sales are sold under the promotion. Should Brand Z continue with the Buy Two for $2.50 promotion?