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Sandra Robinson, VP of marketing for Marx Electronics has developed a marketing plan for presntation to the company's president. The plan calls for television ads,
Sandra Robinson, VP of marketing for Marx Electronics has developed a marketing plan for presntation to the company's president. The plan calls for television ads, something the company has never used. As part of her presentation, she will indicate the impact of the TVads on company profit as follows: While Sandra is quite confident in the cost of the ads and the incremental cost of goods sold if sales are $9.020,000, she is quite uncertain about the sales increase. In fact, she believes that her estimate is on the high side. However, she also believes that if she puts in a more conservative estimate, such as $6,319,000, the president will not go along with the TV ads even though they still will generatesubstantial profits at $6,319,000 of incremental sales. Calculate incremental profit or loss that will be generated if sales are only $6,319,000, (Round intermediate colculatians to 3 decimal places, eg 0.268 and final answer to 0 decimal ploces, eg. 125
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