Company A has developed a new item. They sell the item directly to multiple retailers who...
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Company A has developed a new item. They sell the item directly to multiple retailers who sell them to end-users. The following details their first year sales results and expenses. Gross Sales Revenue to Retailers Trade Promotion to Retailers (10% of the list price) $ Net Sales Revenue to Retailers Cost of Goods Sold Advertising Expense Expense for Consumer Promotions Corporate Overhead Research & Development Costs Sales & Marketing Administration Expenses es is s List Price to Retailers Number of Cookstoves Sold to Retailers $ $ ՄԴ ԱԴ ԱԴ $ $ is es es $ $ $ $20/unit $ 3,000,000.00 300,000.00 2,700,000.00 1,200,000.00 200,000.00 100,000.00 200,000.00 100,000.00 300,000.00 150,000.00 Question: Assume Company A spends an additional $100,000 on advertising and they think they can sell 80,000 more items to the retailers. They will continue to offer retailers a trade promotion of 10% promotion of the items list price. What will be the Total Marketing and Sales Expenses, Net Marketing Contribution, Marketing ROS, and Marketing ROI? Company A has developed a new item. They sell the item directly to multiple retailers who sell them to end-users. The following details their first year sales results and expenses. Gross Sales Revenue to Retailers Trade Promotion to Retailers (10% of the list price) $ Net Sales Revenue to Retailers Cost of Goods Sold Advertising Expense Expense for Consumer Promotions Corporate Overhead Research & Development Costs Sales & Marketing Administration Expenses es is s List Price to Retailers Number of Cookstoves Sold to Retailers $ $ ՄԴ ԱԴ ԱԴ $ $ is es es $ $ $ $20/unit $ 3,000,000.00 300,000.00 2,700,000.00 1,200,000.00 200,000.00 100,000.00 200,000.00 100,000.00 300,000.00 150,000.00 Question: Assume Company A spends an additional $100,000 on advertising and they think they can sell 80,000 more items to the retailers. They will continue to offer retailers a trade promotion of 10% promotion of the items list price. What will be the Total Marketing and Sales Expenses, Net Marketing Contribution, Marketing ROS, and Marketing ROI?
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Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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