What is the total cost of the coupon campaign for Cleveland Foods, considering the redemption rate, incremental sales, and cannibalized sales are as shown in the following image? $ 0.30 coupon value 5,000,000 coupons distributed 4% coupon redemption rate 40% incremental (additional) sales 60% cannibalized sales $ 8.00 per 1,000 coupons distributed $ 0.10 processing cost per coupon $3,000 $112,000 $96,000 $2,000,000
What is the total cost of the coupon campaign for Cleveland Foods, considering the redemption rate, incremental sales, and cannibalized sales are as shown in the following image? $ 0.30 coupon value 5,000,000 coupons distributed 4% coupon redemption rate 40% incremental (additional) sales 60% cannibalized sales $ 8.00 per 1,000 coupons distributed $ 0.10 processing cost per coupon $3,000 $112,000 $96,000 $2,000,000
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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Transcribed Image Text:What is the total cost of the coupon campaign for Cleveland Foods, considering the
redemption rate, incremental sales, and cannibalized sales are as shown in the
following image?
$
0.30 coupon value
5,000,000 coupons distributed
4% coupon redemption rate
40% incremental (additional) sales
60% cannibalized sales
$
8.00 per 1,000 coupons distributed
$
0.10 processing cost per coupon
$3,000
$112,000
$96,000
$2,000,000
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