Fun Treat Fun Treats Inc. sell a variety of drink and food products including juice and ice
Question:
The company's management is considering a special advertising campaign that will run on a Saturday morning when many children are watching television. The advertising campaign is expected to cost $25,000 and only one product can be featured. In-house marketing studies show that the campaign could increase sales of the juice division by $100,000 or increase sales of the ice cream division by $100,000. The marketing supervisor has decided that since both products have the same segment margin, the company will be equally as well off regardless of which product is featured. Required:
A. Do you agree or disagree with the marketing supervisor? Why or why not.
B. Which product do you feel should be featured? Show calculations to support your answer.