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The group product manager for Berry Inc., a cellphone manufacture company, was reviewing price and promotion alternatives for two cellphone products: Blackberry and Blueberry The

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The group product manager for Berry Inc., a cellphone manufacture company, was reviewing price and promotion alternatives for two cellphone products: Blackberry and Blueberry The price and promotion alternatives recommended for the two products by their respective brand mangers included the possibility of using additional promotion or a price reduction to stimulate sales volume. A volume, price, and cost summary for the two products follows: Blackberry Unit price 60.00 Unit variable cost 42.00 18.00 Unit contribution 1,000,000 units Unit volume Blueberry 30.00 Unit price 7.50 Unit variable cost 22.50 Unit contribution 1,500,000 units Unit volume Both brand managers included a recommendation to either reduce price by 10 percent or invest an incremental S4,500,000 in advertising

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