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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 Rash-Away and Red-Away. Both products were designed to reduce skin irritation, but Red-Away was primarily a cosmetic treatment whereas Rash-Away 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:
Rash-Away:
Unit Price $2.00
Unit Variable costs $1.40
Unit contribution $0.60
Unit volume 1,000,000 units
Red-Away:
Unit Price $1.00
Unit Variable costs $0.25
Unit contribution $0.75
Unit volume 1,500,000 units
Both brand managers included a recommendation to either reduce price by 10% or invest an incremental $150,000 in advertising.b) how many additional sales dollars must be produced to cover each $1 of incremental advertising for rash away? for red awayTttt?

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