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The New Rotie markets in Manhattan Bells to help them combat their minor rodent primarily

The New Rotie markets in Manhattan Bells to help them combat their minor rodent primarily

The New Rotie markets in Manhattan Bells to help them combat their minor rodent primarily to KFC/Taco mousetraps at $100 problems. Annually, the 100,000 each, with a gross sells about quite well. margin of 50%. The company is doing Recently New Rotic has an opportunity to launch a marketing campaign to increase sales in its trading area. Specifically, city's "Rat Attack'' received an invitation to be a primary sponsor for the receive rodent elimination program. In exchange Rotic of its various advertising for sponsorship fees, new sales and PR benefits, which are expected to translate into mousetraps. These new sales will vary amount of money the company invests in sponsoring pending on the amount of will the program, but in general, there is some relationship between and sponsorship and sales gain These costs and gains however are purely a one-time thing. not have long term impact beyond the current period. answer office has provided the following alternatives to New Rotic, and they expect an by tonight Sponsorship Amount Sales Gain in units 3,000 $100,000 5,800 $200,000 8,100 $300,000 Assume New Rotic's gross margins will not change regardless of volume. In other words, the company will continue to earn a 50% gross margin. Assume also that the company has enough capacity to meet the new sales. The company chooses projects based on the highest ROI. Mr. Rotic, the CEo, has to make a decision right away. Should he sponsor the program at all? If yes, at which level? He turns to you for numerical analysis. What will you tell him? Show your calculations and reasoning clearly On first

Abhinav 02-Dec-2019

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