Question: Lets modify the scenario from Q1 and Q2 a bit. Management estimates that the incremental promotion program required to generate sufficient demand to boost sales
Lets modify the scenario from Q1 and Q2 a bit. Management estimates that the incremental promotion program required to generate sufficient demand to boost sales by 20% will need to be:
| Marketing Costs | $ 60,000 (exclusive of commissions) |
| Consumer Advertising | $ 57,451 |
| Trade Promotion | $ 38,063 |
| Sales Promotion | $ 25,000 |
The total market for craft beer sold in six-packs is about 2,500,000 six-packs per year. How much market share will Shannons need to acquire in order to break-even on the incremental costs that are anticipated? Express your answer in percent format to two decimal places. For example, 5.00 for five percent or .50 for one-half of one percent. Do not include the percent sign. Assume that price and variable costs per six-pack remain the same as in Q2.
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