The following shows the change in sales, cost and net profit estimates after a company launches a marketing campaign for two products within its brand which are expected to increase sales for each product by 20% (Models A35 and Model C10). These products are sold at four different regions. Based on these changes, how much should the company be willing to spend for the marketing campaign of these products? Assume that the company wide profits will jump by 16% from $497,991.00 to $575,888.46.

 

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Sales before Increase Total Cost Before lIncrease Net Profit Before Increase $9,783.00 $13,108.00 East Model A35 Model C10 $18,981.00 $25,164.00 $9,198.00 $12,056.00 North Model C10 $76,191.00 $31,577.00 $44,614.00 South Model A35 Model C10 $254,745.00 $130,713.00 $94,035.00 $51,311.00 $160,710.00 $79,402.00 West Model A35 Model C10 $54,945.00 $50,328.00 $22,635.00 $22,216.00 $32,310.00 $28,112.00 Sales before Increase Total Cost Before lIncrease Net Profit Before Increase $9,783.00 $13,108.00 East Model A35 Model C10 $18,981.00 $25,164.00 $9,198.00 $12,056.00 North Model C10 $76,191.00 $31,577.00 $44,614.00 South Model A35 Model C10 $254,745.00 $130,713.00 $94,035.00 $51,311.00 $160,710.00 $79,402.00 West Model A35 Model C10 $54,945.00 $50,328.00 $22,635.00 $22,216.00 $32,310.00 $28,112.00