Question: Upon reflection, Mr . Stich decides not to increase Brand X ' s advertising budget. Instead, he thinks he might give retailers and incentive to
Upon reflection, Mr Stich decides not to increase Brand Xs advertising budget. Instead, he thinks he might give retailers and incentive to promote Brand X by increasing their margins from to The margin increase would be accomplished by lowering the price of the product to retailers. Wholesaler margins would remain at
a If retailer margins are raised to next year, how many units will Brand X have to sell to break even?
b How many units will Brand X have to sell to achieve the same profit impact next year as it did this year?
c What would Brand Xs market share have to be for its profit impact to remain at this year's level.
d What would Brand Xs market share have to be for it to generate a profit impact of $
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