The selling price per box for Cynthia's Cookies is $19.81. Fixedcosts are $60,000 and the variable cost per box is $9.82.Cynthia's Cookies must decide between two improvementoptions. Option 1 is spending $8,000 on a new onlinemarketing campaign that is expected to increase last year'ssales (units) by 25 percent. Option 2 is to reduce variablecosts by 10 percent by spending $8,000 on equipment andprocess improvements. For Option 2, sales remain at 8,600boxes. (The assumption here is that each option is equallycostly to implement.) What option provides the higher profits?Round your answers to the nearest cent.Net profit from Option 1: $Net profit from Option 2: $-Select- ✓ provides the higher profits.

Selling price = $19.81Fixed price = $60,000Variable cost per box = $9.82Increase in sales for Option…

Answered: The selling price per box for Cynthia's…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Manufacturers and distributors implore you, as the chief buyer for a major supermarket chain, to carry their newest products. There are dozens of brand-new offerings every week. These products are often introduced through widespread marketing efforts or special offers from retailers. To create way for new products, existing ones must be reduced or eliminated. You and the IT department should work together to develop a marketing MIS that can predict how stock adjustments will affect profits. What recommendations do you have for the IS group as they plan the architecture of this system?
CLO #1 - Identify, define, and describe key marketing components, product life cycle, 3Cs and 4Ps and corresponding marketing strategies. CLO #2 - Recommend solutions to marketing problems using appropriate concepts, principles, analytical techniques, and theories. CLO #3 - Evaluate the quality of proposed solutions to marketing management problems against appropriate criteria, including organizational constraints. CLO #4 - Summarize the relevance and application of concepts, principles, and theories used in marketing to contemporary events and global markets and evaluate marketing decisions. CLO #6 - Evaluate the ethical implications and aspects of social responsibility of certain marketing campaigns and strategies.
21) Which of the following statements is not correct about pricing and prices? Select one: a. It is the sum of all the values that customers sacrifice to get beoefits of having a product. b.itis the amount of money charged for a product or a service c. itis the only element in the marketing mix that produces revenuer all other elemests represent cost. d. itis one of the least important elements that determine a firm's mariket share and protitability
The Marketing Department is finalizing the CPM, IFE, and EFE for presentation to the CEO and members of the BOD next week as part of the preparations for the annual planning in November. You noticed that the KSFs in the CPM and the items included in the IFE (Strengths and Weaknesses) and EFE (Opportunities and Threats) were all rated from 1 to 4. Example in the CPM, the factors were rated from as high as 4 to as low as 1, the IFE which includes both the strengths and weaknesses were rated from 1 to 4 while the EFE items were rated from 1 to 4 as well. Using your knowledge and experience, you can infer that: All tools were properly prepared. Of the 3 matrices, only the EFE is correct. Of the 3 matrices, only the IFE is not correct. The CPM is accurate while the IFE and EFE matrices are inaccurate. Of the 3 matrices, only the IFE is correct.
1. Illustrate how to calculate a breakeven point in terms of units and dollars using total fixed costs and variable costs in your calculation. 2. Which introductory pricing strategies have you noticed when you shop? 3. Illustrate two different pricing approaches that businesses use. 4. Which forecasting method would be most accurate for forecasting sales of hair-care products in the next year? How would your answer change if you were forecasting for the next month? For home appliances? 5. What is the most important part of a marketing audit? Why? What is the least important part? Why?
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Manufacturers and distributors beg you to stock their new items as a big grocery chain's top buyer. Tens of new things are launched weekly. These items are often introduced with nationwide advertising campaigns and merchant promotions. To introduce new goods, shelf space for old products must be lowered or deleted. You need to work with the IS department to create a marketing MIS to predict the profit impact of adding or removing an item from inventory. What do you suggest to the IS department for establishing such a system?
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iness MarketingQ&A LibraryWhat are the significant findings/ key matters of Southwest Airlines What are the significant findings/ key matters of Southwest Airlines close Get live help whenever you need from online tutors!Try bartleby tutor todayarrow_forward Question Rollin King and Herb Kelleher started Southwest Airlines in 1971 with this idea: if they could take airline passengers where they want to go, on time, at the lowest possible price, and have a good time while doing it, people would love to fly their airline. The result? No other airline in the industry's history has enjoyed the customer loyalty and extended profitability for which Southwest is now famous. The company now flies more than 3,400 times each day to over 64 destinations across the United States There's more to the story, however, than making promises and hoping to fulfill them. A large part of Southwest Airlines' success lies in its ability to plan long-term capacity to better match demand,…
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