11-23 (similar to) Nat cash flows for a markating campalgn Marcus Tub.docx

This preview shows page 1 - 3 out of 3 pages.

11-23 (similar to) Nat cash flows for a markating campalgn Marcus Tube, a manulachurer of highquality aluminum tubling, has maintained stable sales and profits over the past 10 years. Although the market for aluminum tubing has been expanding by 3% per year, Marcus has been unsuccesstul in sharing this growth To increase its sales, the fem is considenring an aggressive markeing campaign that centers on regularly nunning ads in al relevarnt trade joumals and exhbiting products at al major regional and national trade shows. The campaign is expected to require an annual tax- deductible expendture of $147,000 over the next 5 years. Sales revenue, as shown in the income statement for 2018 Etotaled $20,500,000. the proposed marketing campaign is not initated, sales are expected to remain at this level in each of the rext 5 years, 2019 through 2023 Wh he marketing campaign, sales are expected to rise to the levels shown in the table Tm for each of the next 5 years, cost of goods sold is expected to remain at 73 % of sales general and

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture