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This is a marketing class, please include all calculations After very strong years in 2020 and 2021 , sales of KitchenHelper's Super Cake Mixer TM
This is a marketing class, please include all calculations
After very strong years in 2020 and 2021 , sales of KitchenHelper's Super Cake Mixer TM product were unimpressive in 2022. KitchenHelper sold and shipped 75,000 Super Cake Mixers TM in 2022 , at an average price of $125. KitchenHelper's margin on every unit is 75%. a) If the fixed costs allocated to Super Cake Mixer TM are $3,000,000, how many units must KitchenHelper sell to break even? b) Did KitchenHelper make a profit on Super Cake Mixer TM in 2022? If so, how much? If not, how much did they lose? To reinvigorate sales, KitchenHelper is considering a multi-market, out-of-home, awareness campaign. It's estimated that the campaign would generate a 50% increase in sales and would cost $2,000,000. c) What would the return on marketing investment be for this marketing campaign? d) Should KitchenHelper proceed with the campaign? Why or why not Step by Step Solution
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