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SECTION II: MARKETING ARITHMETIC QUESTIONS In responding to the questions in this section of the exam, please note: - Please answer ALL questions in this

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SECTION II: MARKETING ARITHMETIC QUESTIONS In responding to the questions in this section of the exam, please note: - Please answer ALL questions in this section - Be precise and succinct in your response, and - Where possible you may use bullet points to provide your response. - For all these questions, to EARN FULL credit, you MUST show your work. You will get partial credit ONLY if you show the formulas used for each calculation. - Please write your solutions in a structured and legible manner so that they are clear to follow when grading. Use the information below to respond to the next FOUR (4) questions: Jimaine Grainger, works for GE Appliances as a Product Manager for Home and Kitchen Appliances and draws an annual salary of $100,000. He has primary responsibility for the GE line of Built-in Microwave Ovens, specifically Model PEB9159SFSS. GE sells the model exclusively through Best Buy, Inc with a manufacturer margin of 60%. Best Buy, Inc. sells the model to consumers in the US at a retail margin on the product is 45%. According to a recent report released by the Gartner Group, the total US market for built-in microwave ovens is estimated to be 225,000 units. Jimaine estimates that Model PEB 9159 SFSS has 6% of this market. Varioble costs of manufacturing Model PEB9159SFSS are $142 while the company has invested $525,000 in machinery to manufacture this model. The GE Appliances salesforce is paid a commission of $40 per unit sold. GE Appliances typically employs the services of Regis Transport to ship all the microwave ovens to Best Buy. Regis Transport charges a flat rate of $48 per microwave that is shipped. GE Appliances has allocated $950,000 toward advertising and promotional expenses for this microwave oven. 6. Upon reflection, Jimaine decides not to increase the advertising budget for next year. Instead, he thinks he might give Best Buy, Inc an incentive to sell more units of Model PEB9159SFSS by increasing the margin for Best Buy, Inc. from 45% to 55%. What would the market share for Model PEB9159SFSS have to be for GE to maintain the same profit impoct as the current year' (4 points)

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