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Question 12 The Segmented Panda Clothing Dision 1615.200 $256.500 $358.700 Foot Division 35.000 5204.000 3517.00 127.500 $248,700 51.559ADO 73100 $221.000 $875.000 Sales Revenge Les Variable

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Question 12 The Segmented Panda Clothing Dision 1615.200 $256.500 $358.700 Foot Division 35.000 5204.000 3517.00 127.500 $248,700 51.559ADO 73100 $221.000 $875.000 Sales Revenge Les Variable Costs Contribution Margin Les Traceabile Fred Costs Division Segment Margin Less Common Fixed Costs $118.750 $102.300 $134350 $355.400 5239.950 $118.700 $114,350 5473.000 395.000 Net Profit $378,000 The CEO is considering a special targeted social media marketing campaign which will cost $45,000 but only one division's products can be featured as part of the campaign The company's marketing department advise that based on their projections, sales for the clothing. footwear and toys division would increase by 17%, 20% and 22% respectively as a result of the campaign. Note that only one of these divisions will receive the revenue boost as a result of being featured in the marketing campaign Required: a) Which division do you believe should be featured in the marketing campaign to maximise company profits? Support your answer with reasons and calculations. (3 marks) ImportantRound to the nearest 2 decimal places for numbers used in calculations b) What would the total company net profit become if this division was featured? (1 mark) c) What other factors should the CEO take into consideration in making this decision? (1 mark) Note Show all working out and clearly distinguish between your responses to part a), b) and ) Relevant Formula Contribution Margin Ratio - Contribution Margin / Sales Segment Margin Ratio - Segment Margin / Sales Residual Income = Net Profit - (Net Operating Assets x Minimum Rate of Return) Return on Investment (ROI) = Net Profit/Net Operating Assets

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