[Bob] Bobs Burgers had sales of $5,000,000 last year and cost of goods of $2,500,000. The entire burger industry has sales of $50,000,000. Furthermore, Bob's Burgers spent $10,000 for marketing last year, while the industry as a whole spent $70,000. Suppose Bob's Burgers wanted to increase their market share by an additional 4%. Using share point analysis, how much additional profit would they make and how much additional money would they need to spend on marketing to achieve this? O $1,500,000: $42.000 O $1,000,000, $4.200 O $1.000.000: $10,000 O $1,500,000: $70,000 O $1,000,000; $700
[Bob] Bobs Burgers had sales of $5,000,000 last year and cost of goods of $2,500,000. The entire burger industry has sales of $50,000,000. Furthermore, Bob's Burgers spent $10,000 for marketing last year, while the industry as a whole spent $70,000. Suppose Bob's Burgers wanted to increase their market share by an additional 4%. Using share point analysis, how much additional profit would they make and how much additional money would they need to spend on marketing to achieve this? O $1,500,000: $42.000 O $1,000,000, $4.200 O $1.000.000: $10,000 O $1,500,000: $70,000 O $1,000,000; $700
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![[Bob] Bobs Burgers had sales of $5,000,000 last year and cost of goods of $2,500,000. The entire
burger industry has sales of $50,000,000. Furthermore, Bob's Burgers spent $10,000 for marketing
last year, while the industry as a whole spent $70,000. Suppose Bob's Burgers wanted to increase
their market share by an additional 4%. Using share point analysis, how much additional profit would
they make and how much additional money would they need to spend on marketing to achieve this?
O $1,500,000: $42.000
O $1,000,000; $4,200
O $1,000,000; $10,000
O $1.500,000; $70,000
O $1,000,000; $700](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7cd338bb-3738-4289-b54a-3b7b8416cf99%2F0e98c402-10d8-44b0-a368-470d641363fd%2Fimuhlj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[Bob] Bobs Burgers had sales of $5,000,000 last year and cost of goods of $2,500,000. The entire
burger industry has sales of $50,000,000. Furthermore, Bob's Burgers spent $10,000 for marketing
last year, while the industry as a whole spent $70,000. Suppose Bob's Burgers wanted to increase
their market share by an additional 4%. Using share point analysis, how much additional profit would
they make and how much additional money would they need to spend on marketing to achieve this?
O $1,500,000: $42.000
O $1,000,000; $4,200
O $1,000,000; $10,000
O $1.500,000; $70,000
O $1,000,000; $700
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