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Unformatted text preview: fee for leasing
the floor space, as well as a percentage for every ad it sells. Alberta
was definitely interested, and turned to you after Beeker left.
“Tom says that advertising decals on the floor in front of the
product reach consumers right where they’re standing when making a decision,” explained Alberta. “He says the ads increase sales
from 25 to 75 percent.”
You both look down at the dusty floor, and Alberta laughs.“It
seems funny that manufacturers will pay hard cash to put their
names where customers are going to track dirt all over them! But
if Tom’s telling the truth, we could profit three ways: from the leasing fee, the increased sales of products being advertised, and the
share in ad revenues. That’s not so funny.”
Your task: Alberta Greenwood asks you to write a letter for her
signature to CEO Richard Rebh at Floorgraphics, Inc. (5 Vaughn
Dr., Princeton, NJ 08540) asking for financial details and practical information about the ads. For example, how will you clean
your floors? Who installs and removes the ads? Can y...
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This note was uploaded on 03/24/2013 for the course ECON 830 taught by Professor Shahlasultaova during the Fall '12 term at Khazar University.
- Fall '12