MGMT 324 - advertising can lead to 0.9 M units of...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Mgmt 324 Quiz 1 1. In 2009, Oscar Mayer invested $85,000 coming up with a recipe for a chicken hotdog (the recipe can’t be sold). Over the last year, Oscar Mayer has also spent $45,000 experimenting with and modifying some of their equipment to process chicken hotdog. To produce and launch the chicken hotdog, Oscar Mayer needs to purchase a set of new equipment that costs $1,750,000. What is the fixed cost for Oscar Mayer to consider when deciding whether to launch chicken hotdog or not in 2010 (i.e. what is avoidable fixed cost)? A. $85,000 B. $45,000 C. $1,750,000 D. $85,000+$45,000 E. $85,000+$45,000+1,750,000 2. Oscar sells beef hotdog with a unit contribution of $1.10 per pound. It expects to sell 10 million pounds of beef hotdog this year if no marketing action is taken. Now, which of the following marketing options you want to recommend to the manger of Oscar to achieve higher profits? A. Spend $1.1 M more in advertising. A marketing research showed that such an increase of
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: advertising can lead to 0.9 M units of incremental sales. B. Have a $0.1 price cut. A marketing research showed such a price cut can lead to 0.99 M units of incremental sales. C. Have a $0.1 price cut and spend $1.1M more in advertising. The effect of advertising and price cut will be the same as in A and B. D. Have a $0.1 price increase. A marketing research showed that such a price increase can lead to 0.8 M pounds of decrease on sales. E. None of the above 3. The Pringles Potato Chip example was used in class mainly as an illustration of: A. Demographic segmentation B. Focus group C. Lack of marketing orientation D. Monitor changes in consumers’ needs 4. Which of the following concept does NOT belong to Internal Orientation: A. Production concept B. Product concept C. Selling concept D. Marketing concept Answer Keys: 1. C; 2. D; 3. C; 4. D...
View Full Document

This document was uploaded on 02/06/2011.

Ask a homework question - tutors are online