Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 9: 0n Relative Performance Impacts of Your Own Products Below is a summary of Report 6. Compare the relative performance of the two products

image text in transcribed
Question 9: 0n Relative Performance Impacts of Your Own Products Below is a summary of Report 6. Compare the relative performance of the two products (Baller and Banness) in Period 0 (the last Period of decisions) in terms of their sales percentages (of company total), gross profits (of company total), expenses (of company total), and net contributions (of company total). Which product seems to have performed much better than the other in contributing to the company's bottom-line? Why? How might the company's pricing decisions have caused the big differences in their relative performances (Hint: examine the Gross Margin %)? What would you do in the next round's strategic marketing decision-making, in terms of production, pricing, advertising about both products, given the unequal profit impacts of these two products? (15 points) Report 6 - Income Statement Run Name: TGaoDemo- W1 Company: Comp 1 (Company 1) Period: 0 Baller Banness Total Gross Sales 19,555 34,933 54,488 - Distr Margin 6,523 11,133 17,655 Sales (net) 13,032 23,800 36,833 Cost of Sales 11,081 16,459 27,540 Gross Profit 1,951 7,342 9,293 Gross Margin (%) 10 21 17 Creative 100 100 200 Advertising 1,000 1,000 2,000 Holding Costs 337 437 773 Net Contribution 514 5,805 6,319 Note: Sales, expenses, and profits in thousand $5

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_2

Step: 3

blur-text-image_3

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

Marketing Real People, Real Choices

Authors: Michael R. Solomon, Greg W. Marshall, Elnora W. Stuart, J. Brock Smith, Sylvain Charlebois, Bhupesh Shah

4th Canadian Edition

132913178, 978-0134365954, 013436595X, 978-0132913171

More Books

Students also viewed these Marketing questions