Touché Toiletries Inc. has developed an addition to its Lizard man Cologne line tentatively branded Ode d’Toade Cologne. Unit variable costs are 45 cents for a 3-ounce bottle, and heavy advertising expenditures in the first year would result in total fixed costs of $900,000. Ode d’Toade Cologne is priced at $7.50 for a 3-ounce bottle. How many bottles of Ode d’Toade must be sold to break even?
Answer to relevant QuestionsWhat would be your response to the statement, “Profit maximization is the only legitimate pricing objective for the firm”?How does the channel captain idea differ among corporate administered and contractual vertical marketing systems with particular reference to the use of the different forms of influence available to firms?Develop a chart to highlight the role of each of the four main elements of the retailing mix across the four stages of the retail life cycle.Explain how the promotional tools used by an airline would differ if the target audience were (a) Consumers who travel for pleasure (b) Corporate travel departments that select the airlines to be used by company employees.How does competitive product advertising differ from competitive institutional advertising?
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