XYZ Generators Ltd sells generators and is considering a marketing campaign that will analyze two projects over four months marketing campaign period. The marketing campaign will involve either advertising in popular local technical magazine or via a television campaign on a popular local TV network. Upfront costs for the technical magazine option will be a once-off cost of R65 000 whilst the costs of the TV advertisements will amount to R20 000 per month over the four- month period. Other monthly costs over the period will be R4 000 per month in respect of the technical magazine and R 7500 in respect of the television option. Note that these costs are not included in the cost of sales figures. The average Gross Profit margin (not mark-up) is 35% of sales. The Technical Magazine strategy is expected to attract around 1,5% of the total readers of around 200 000 purchasing a generator with an average price of R2 500 per unit. The TV strategy is expected to result in around 0.1% of approximately 3,5 million viewers purchasing generators with an average cost of R 2,500 per generator. Ramirodi Required: a) Advise management as to which marketing strategy option would result in a higher profit return for the company. Show all calculations and round off to the nearest Rand. (15) b) Calculate the net profit margin for each strategy. (2) c) The Technical Magazine strategy could attract around 3% (instead of 1,5%) of the total readers of around 200 000, purchasing a generator with an average price of R2 500 per unit. What strategy would you recommend? Justify your answer. (3)