What is the total cost of the coupon campaign for Cleveland Foods, considering the redemption rate, incremental sales, and cannibalized sales are as shown in the following image? $ 0.30 coupon value 5,000,000 coupons distributed 4% coupon redemption rate 40% incremental (additional) sales 60% cannibalized sales $ 8.00 per 1,000 coupons distributed $ 0.10 processing cost per coupon $3,000 $112,000 $96,000 $2,000,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 3P
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What is the total cost of the coupon campaign for Cleveland Foods, considering the
redemption rate, incremental sales, and cannibalized sales are as shown in the
following image?
$
0.30 coupon value
5,000,000 coupons distributed
4% coupon redemption rate
40% incremental (additional) sales
60% cannibalized sales
$
8.00 per 1,000 coupons distributed
$
0.10 processing cost per coupon
$3,000
$112,000
$96,000
$2,000,000
Transcribed Image Text:What is the total cost of the coupon campaign for Cleveland Foods, considering the redemption rate, incremental sales, and cannibalized sales are as shown in the following image? $ 0.30 coupon value 5,000,000 coupons distributed 4% coupon redemption rate 40% incremental (additional) sales 60% cannibalized sales $ 8.00 per 1,000 coupons distributed $ 0.10 processing cost per coupon $3,000 $112,000 $96,000 $2,000,000
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