Timothy Donaghy has developed a unique formula for growing hair. His proprietary lotion, used regularly for 45 days, will grow hair in bald spots (with varying degrees of success). Timothy calls his lotion Hair-Again and is selling it via the telephone and Internet. His major form of marketing is through 15-minute infomercials and Internet advertising. Timothy sells each 16-ounce bottle of Hair-Again for $15 and pays a commission of 3 percent of sales to telephone operators who field the 1-800 phone calls from potential customers. Fixed marketing expenses for each quarter of the coming year include: Internet banner ads $7,600 Telephone operator time 5,000 Travel 3,000 In addition, early next year Timothy intends to film and show infomercials on television. He expects the cost to be $12,000 in quarters 1 and 2, and that the cost will rise to $24,000 in each of quarters 3 and 4. Timothy expects the following unit sales of Hair-Again: Quarter 1 5,000 Quarter 2 15,000 Quarter 3 40,000 Quarter 4 35,000 Required: Question Content Area 1. Construct a marketing expense budget for Hair-Again for the coming year. Show total amounts by quarter and in total for the year. If required, round your answers to two decimal places. Hair-AgainMarketing Expense BudgetFor the Year Ended December 31 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total - Select - - Select - - Select - - Select - - Select - $- Select - $- Select - $- Select - $- Select - $- Select - Total variable expense $fill in the blank 4b8c01019fee062_13 $fill in the blank 4b8c01019fee062_14 $fill in the blank 4b8c01019fee062_15 $fill in the blank 4b8c01019fee062_16 $fill in the blank 4b8c01019fee062_17 Fixed marketing expense: $- Select - $- Select - $- Select - $- Select - $- Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - Total fixed expense $fill in the blank 4b8c01019fee062_42 $fill in the blank 4b8c01019fee062_43 $fill in the blank 4b8c01019fee062_44 $fill in the blank 4b8c01019fee062_45 $fill in the blank 4b8c01019fee062_46 Total marketing expense $fill in the blank 4b8c01019fee062_47 $fill in the blank 4b8c01019fee062_48 $fill in the blank 4b8c01019fee062_49 $fill in the blank 4b8c01019fee062_50 $fill in the blank 4b8c01019fee062_51 Question Content Area 2. What if the cost of internet ads rises to $16,000 in Quarters 2 through 4? How would that affect variable marketing expense? Fixed marketing expense? Total marketing expense? If no effect, enter "0" and select "no impact". Variable marketing expense $fill in the blank 5446b3046055077_1 Fixed marketing expense $fill in the blank 5446b3046055077_3 Total marketing expense $fill in the blank 5446b3046055077_5
Timothy Donaghy has developed a unique formula for growing hair. His proprietary lotion, used regularly for 45 days, will grow hair in bald spots (with varying degrees of success). Timothy calls his lotion Hair-Again and is selling it via the telephone and Internet. His major form of marketing is through 15-minute infomercials and Internet advertising. Timothy sells each 16-ounce bottle of Hair-Again for $15 and pays a commission of 3 percent of sales to telephone operators who field the 1-800 phone calls from potential customers. Fixed marketing expenses for each quarter of the coming year include: Internet banner ads $7,600 Telephone operator time 5,000 Travel 3,000 In addition, early next year Timothy intends to film and show infomercials on television. He expects the cost to be $12,000 in quarters 1 and 2, and that the cost will rise to $24,000 in each of quarters 3 and 4. Timothy expects the following unit sales of Hair-Again: Quarter 1 5,000 Quarter 2 15,000 Quarter 3 40,000 Quarter 4 35,000 Required: Question Content Area 1. Construct a marketing expense budget for Hair-Again for the coming year. Show total amounts by quarter and in total for the year. If required, round your answers to two decimal places. Hair-AgainMarketing Expense BudgetFor the Year Ended December 31 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total - Select - - Select - - Select - - Select - - Select - $- Select - $- Select - $- Select - $- Select - $- Select - Total variable expense $fill in the blank 4b8c01019fee062_13 $fill in the blank 4b8c01019fee062_14 $fill in the blank 4b8c01019fee062_15 $fill in the blank 4b8c01019fee062_16 $fill in the blank 4b8c01019fee062_17 Fixed marketing expense: $- Select - $- Select - $- Select - $- Select - $- Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - Total fixed expense $fill in the blank 4b8c01019fee062_42 $fill in the blank 4b8c01019fee062_43 $fill in the blank 4b8c01019fee062_44 $fill in the blank 4b8c01019fee062_45 $fill in the blank 4b8c01019fee062_46 Total marketing expense $fill in the blank 4b8c01019fee062_47 $fill in the blank 4b8c01019fee062_48 $fill in the blank 4b8c01019fee062_49 $fill in the blank 4b8c01019fee062_50 $fill in the blank 4b8c01019fee062_51 Question Content Area 2. What if the cost of internet ads rises to $16,000 in Quarters 2 through 4? How would that affect variable marketing expense? Fixed marketing expense? Total marketing expense? If no effect, enter "0" and select "no impact". Variable marketing expense $fill in the blank 5446b3046055077_1 Fixed marketing expense $fill in the blank 5446b3046055077_3 Total marketing expense $fill in the blank 5446b3046055077_5
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
Related questions
Question
Timothy Donaghy has developed a unique formula for growing hair. His proprietary lotion, used regularly for 45 days, will grow hair in bald spots (with varying degrees of success). Timothy calls his lotion Hair-Again and is selling it via the telephone and Internet. His major form of marketing is through 15-minute infomercials and Internet advertising. Timothy sells each 16-ounce bottle of Hair-Again for $15 and pays a commission of 3 percent of sales to telephone operators who field the 1-800 phone calls from potential customers. Fixed marketing expenses for each quarter of the coming year include:
| Internet banner ads | $7,600 |
| Telephone operator time | 5,000 |
| Travel | 3,000 |
In addition, early next year Timothy intends to film and show infomercials on television. He expects the cost to be $12,000 in quarters 1 and 2, and that the cost will rise to $24,000 in each of quarters 3 and 4. Timothy expects the following unit sales of Hair-Again:
| Quarter 1 | 5,000 |
| Quarter 2 | 15,000 |
| Quarter 3 | 40,000 |
| Quarter 4 | 35,000 |
Required:
Question Content Area
1. Construct a marketing expense budget for Hair-Again for the coming year. Show total amounts by quarter and in total for the year. If required, round your answers to two decimal places.
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Total | |
|---|---|---|---|---|---|
|
|
- Select - | - Select - | - Select - | - Select - | - Select - |
|
|
$- Select - | $- Select - | $- Select - | $- Select - | $- Select - |
| Total variable expense | $fill in the blank 4b8c01019fee062_13 | $fill in the blank 4b8c01019fee062_14 | $fill in the blank 4b8c01019fee062_15 | $fill in the blank 4b8c01019fee062_16 | $fill in the blank 4b8c01019fee062_17 |
| Fixed marketing expense: | |||||
|
|
$- Select - | $- Select - | $- Select - | $- Select - | $- Select - |
|
|
- Select - | - Select - | - Select - | - Select - | - Select - |
|
|
- Select - | - Select - | - Select - | - Select - | - Select - |
|
|
- Select - | - Select - | - Select - | - Select - | - Select - |
| Total fixed expense | $fill in the blank 4b8c01019fee062_42 | $fill in the blank 4b8c01019fee062_43 | $fill in the blank 4b8c01019fee062_44 | $fill in the blank 4b8c01019fee062_45 | $fill in the blank 4b8c01019fee062_46 |
| Total marketing expense | $fill in the blank 4b8c01019fee062_47 | $fill in the blank 4b8c01019fee062_48 | $fill in the blank 4b8c01019fee062_49 | $fill in the blank 4b8c01019fee062_50 | $fill in the blank 4b8c01019fee062_51 |
Question Content Area
2. What if the cost of internet ads rises to $16,000 in Quarters 2 through 4? How would that affect variable marketing expense? Fixed marketing expense? Total marketing expense? If no effect, enter "0" and select "no impact".
| Variable marketing expense | $fill in the blank 5446b3046055077_1 |
|
| Fixed marketing expense | $fill in the blank 5446b3046055077_3 |
|
| Total marketing expense | $fill in the blank 5446b3046055077_5 |
|
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