Marketing Exercise

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Nyrknaqre32

Business Finance

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ANSWER QUESTIONS SHOW ALL CALCULATION

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Explanation & Answer

attached is my complete solution

Question 5:
a) The unit contributions of Stain-Away and Cavity-Away are $4.00  $3.15  $0.85 and
$3.00  $1.50  $1.50 , respectively.
For Stain-Away, we have the following calculations:
Contribution Margin (CM) =

$4.00  $3.15
$4.00
 0.2125


CM = Unit Selling Price – Unit Variable Cost / Unit Selling Price
Absolute Increase in Unit Sales =
=

$250,000
$0.85  Unit Contribution 

= 294,118 units
Absolute Increase in Dollar Sales =
=

$250, 000
(CM)
0.2125

= $1,176, 471
For Cavity-...


Anonymous
Just what I was looking for! Super helpful.

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