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ProfitabilityExercise2

# ProfitabilityExercise2 - Per unit gross margin at regular...

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Name: __________________________________________ Date:_____________ Given the following: Brand X’s regular price = \$2.00 Brand X’s unit cost = \$0.50 Base Sales = 1,000 units Coupon value = \$0.25 Coupons distributed/dropped = 10,000 Projected coupon redemption rate = 7%; Projected sales for the month = 1,300 units Find: Units bought with a coupon = ___________________ Per unit gross margin after coupon = ___________________ Total Gross Margin from units purchased with coupon = ___________________ Units bought at regular price =
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Unformatted text preview: ___________________ Per unit gross margin at regular price = ___________________ Total Gross Margin from units purchased at regular price = ___________________ Total Gross Margin = ___________________ Incremental unit sales = ___________________ Units bought with coupons = ___________________ Incremental sales bought with coupons = ___________________ Base sales bought with coupons = ___________________ Is this promotion profitable? ___________________________________________...
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