The group president for Household Products Corporations was reviewing price and promotion alternatives for two products:...
The group president for Household Products Corporations was reviewing price and promotion alternatives for two products: Green-Mist and Green-Rinse. Both products were designed to keep the bathroom odor free---Green-Mist being an aerosol deodorant and Green-Rinse being an in-tank toilet rinse.
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:
| Green-Mist | Green-Rinse | |
| Unit Price | $6.00 | $4.00 |
| Unit Variable Cost | $3.50 | $0.50 |
| Unit Contribution | $2.50 | $3.50 |
| Unit Volume | 1,000,000 units | 1,500,000 units |
Both brand managers included a recommendation to either reduce price by 10 percent or invest an incremental $300,000 in advertising
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What absolute increase in unit sales and dollar sales will be necessary to recoup the incremental increase in advertising expenditures for Green-Mist? For Green-Rinse?
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How many additional sales dollars must be produced to cover each $1.00 of incremental advertising for Green-Mist? For Green-Rinse?
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What absolute increase in unit sales and dollar sales will be necessary to maintain the level of total contribution dollars if the price of each product is reduced by 8%?
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The group president for Household Products Corporations was
reviewing price and promotion alternatives for two products:...
The group president for Household Products Corporations was reviewing price and promotion alternatives for two products:...
The group president for Household Products Corporations was reviewing price and promotion alternatives for two products: Green-Mist and Green-Rinse. Both products were designed to keep the bathroom odor free---Green-Mist being an aerosol deodorant and Green-Rinse being an in-tank toilet rinse. 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...
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The group product manager for ointments at American Therapeutic Corpora-tion was reviewing price and promotion alternatives...
The group product manager for ointments at American Therapeutic Corpora-tion 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 the rash. The price and promotion alternatives recommended for the two prod¬ucts by their respective brand managers included the possibility of using ad¬ditional promotion or a price reduction to stimulate sales volume. A volume, price,...
The group product manager for ointments at American Therapeutic Corporation was reviewing price and promotion alternatives...
The group product manager for ointments at American Therapeutic 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 where as rash away also included a compound that eliminated the rash. 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...
Accounting.....What absolute increase in unit sales and dollars sales will be necessary to...
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Management is considering the following independent alternatives for 2018. 1. Increase unit selling price 20% with...
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Management is considering the following independent alternatives for 2018. 1. Increase unit selling price 20% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $150,000 to total salaries of $60,000 plus a 5% commission on sales. Instructions (a) Compute the break-even point in dollars for 2017. (b) Compute the break-even point in dollars under each of the alternative courses of action. (Round all ratios to nearest full percent.) Which...
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