pl answer all the three A small bath tissue manufacturer is considering two sales promotions: a 50%OFF coupon promotion or a reusable container (premium) promotion. If the manufacturer uses a coupon promotion,1,500,000 coupons are to be distributed with the expectation of a 5% redemption rate. The costs of printing anddistributing the coupons is $100,000. The other option is to offer a FREE canister (premium) for every purchase. Thepremium being considered costs $0.50 per unit. There are no other costs associated with running the canisterpromotion. Historical records show that coupon promotions typically double the product's average monthly saleswhile a premium promotion increases sales by only 50%. Neither promotions affect the next month sales. On anaverage month, the product being considered for sales promotion sells 100,000 units at its regular price of $10.00,and its unit contribution at full price is $6.00. Based on contributions after sales promotions, which salespromotions should the manufacturer use?Select one:O a. The manufacturer should use the coupon promotion.b. The manufacturer should use the premium promotion.c. The manufacturer should not use either sales promotion.d. The manufacturer can use either the coupon or the premium promotion.If a product's variable cost equals $2.00 and its selling price equals $5.00, then its unit contribution equals:Select one:O a. $2.50b. $3.00c. $5.00O d. $2.00 By offering a sales promotion, Brand X can expect incremental sales from any of the following individuals EXCEPT?Select one:O a. Dee, a current Brand X user who continues to buy the same amount.O b. Jen, a Brand X user who tends to purchase and consume more of the product.c. Jamie, who is unaware of Brand X or the product category and is now purchasing Brand X.d. Brad, a competing brand user who tends to switch over to whatever brand is offering sales promotions.Clear my choice

In this problem we will compare two options . The oprion which…

Answered: OFF coupon pr 500,000 coup istributing…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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pl answer all the three

A small bath tissue manufacturer is considering two sales promotions: a 50%
OFF coupon promotion or a reusable container (premium) promotion. If the manufacturer uses a coupon promotion,
1,500,000 coupons are to be distributed with the expectation of a 5% redemption rate. The costs of printing and
distributing the coupons is $100,000. The other option is to offer a FREE canister (premium) for every purchase. The
premium being considered costs $0.50 per unit. There are no other costs associated with running the canister
promotion. Historical records show that coupon promotions typically double the product's average monthly sales
while a premium promotion increases sales by only 50%. Neither promotions affect the next month sales. On an
average month, the product being considered for sales promotion sells 100,000 units at its regular price of $10.00,
and its unit contribution at full price is $6.00. Based on contributions after sales promotions, which sales
promotions should the manufacturer use?
Select one:
O a. The manufacturer should use the coupon promotion.
b. The manufacturer should use the premium promotion.
c. The manufacturer should not use either sales promotion.
d. The manufacturer can use either the coupon or the premium promotion.
If a product's variable cost equals $2.00 and its selling price equals $5.00, then its unit contribution equals:
Select one:
O a. $2.50
b. $3.00
c. $5.00
O d. $2.00

Transcribed Image Text:By offering a sales promotion, Brand X can expect incremental sales from any of the following individuals EXCEPT? Select one: O a. Dee, a current Brand X user who continues to buy the same amount. O b. Jen, a Brand X user who tends to purchase and consume more of the product. c. Jamie, who is unaware of Brand X or the product category and is now purchasing Brand X. d. Brad, a competing brand user who tends to switch over to whatever brand is offering sales promotions. Clear my choice

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