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Raisa Cosmetics Company is planning a one-month campaign for March to promote sales of one of its two cosmetics products. A total of $200,000 has
Raisa Cosmetics Company is planning a one-month campaign for March to promote sales of one of its two cosmetics products. A total of $200,000 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 75,000 additional units of moisturizer or 60,000 additional units of perfume could be sold from the campaign without changing the unit selling price of either product. 1. Prepare a differential analysis as of February 17 to determine whether to promote moisturizer (Alternative 1 ) or perfume (Alternative 2 ). If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Promote Moisturizer (Alt. 1) or Promote Perfume (Alt. 2)
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