A company is examining its options for selling a product listed at $359.97. Both expenses and profits are 20% and 22% of the regular unit selling price, respectively. At this price, the company forecasts sales of 6,000 units. Consider the following two scenarios:
Scenario A: If the company holds a sale and marks down the product by 10%, its market research predicts that sales will rise to 11,225 units.
Scenario B: If the company issues a $60.00 mail-in rebate, it will have increased marketing expenses of $6.35 per unit. Only 45% of rebates are expected to be redeemed. Market research predicts that sales will rise to 10,500 units.
Should the company leave the product at its regular price, conduct the sale, or issue the mail-in rebate?
Must be in excel format with as much formula help as possible
Get Answers For Free
Most questions answered within 1 hours.