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the group product manager for ointments at a corporation was reviewing price and promotion alternatives for two products Rash - Away and Red - Away.
the group product manager for ointments at a corporation was reviewing price and promotion alternatives for two products RashAway and RedAway. Both products were designed to reduce skin irritation, but RedAway was primarily a cosmetic treatment whereas RashAway also included a compound that eliminated to rash. The price and promotion alternatives recommended for the two products by their respective brand managers 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:
RashAway:
Unit Price $
Unit Variable costs $
Unit contribution $
Unit volume units
RedAway:
Unit Price $
Unit Variable costs $
Unit contribution $
Unit volume units
Both brand managers included a recommendation to either reduce price by or invest an incremental $ in advertising.b how many additional sales dollars must be produced to cover each $ of incremental advertising for rash away? for red awayTttt?
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