Question: 2 0 2 5 Marketing Plan: At the present time, we sell the product to retailers for $ 1 1 . 0 0 per rattle.

2025 Marketing Plan: At the present time, we sell the product to retailers for $11.00 per rattle. Retailers generally charge the consumers between $12 and $12.50. If we cut our selling price to retailers to $10.00, I expect that the product will do much better. The retailers' increased markup will give them the incentive to display our product more prominently and to promote it more vigorously to customers. We should support this strategy by supplying more promotional materials to retailers, which I expect would be an increase of $1,200 in Advertising and Promotion costs. Based on the price cut and the increase in advertising and promotion, I expect that we will be able to boost our sales volume by 20 percent to 120,000 units in 2025.

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