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The firm has an existing product with an advertising and promotion budget of $25.0 million, and projected sales of 115 million units. They are launching
The firm has an existing product with an advertising and promotion budget of $25.0 million, and projected sales of 115 million units. They are launching a new product with a budget of $20.0 million and estimated sales of 10 million units in the first year. The sales force expense of $10 million has been allocated equally between the products, with 90% of the plant overhead to the existing product and 10% to the new product. Additional values for each product are shown in the table below
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