Should he lower her advertising budget

Assignment Help Operation Management

Reference no: EM1377184

Q. Cloris Tool also Die, located in Cleveland, OH enjoys a 4% share of a total market of 75,000 class C filtration units per year (retail price is $2,000 per unit). Jenna Johnson, president, estimates which variable production costs amount to $750 per unit also fixed manufacturing cost total $275,000 per year. In addition, shipping also packaging cost is $70,000 also annual advertising budget is $100,000. Cloris employs one sales representative at a salary of $40,000 per year.

If Johnson reduces advertising budget by $20.000 she expects to 75 fewer units. Should he lower her advertising budget?

Reference no: EM1377184

Questions Cloud

Phenomenological approach to investigate : This work employs a phenomenological approach to investigate how people experience the radical transformation of their work lives caused by reengineering processes.

Forecasting cash flows : An investment banker, states it is not worth my while to worry about detailed, long-term forecasts. Instead, I use the following approach when forecasting cash flows beyond three years.

Which route will minimize lynn expected travel time : In past few years, traffic problems for Lynn's hometown have gotten worse. Which route will minimize Lynn's expected travel time. Which route will maximize Lynn's utility.

Illustrate difference between independent-dependant demand : Illustrate what is difference between independent also dependant demand in a McDonalds restaurant. Describe optimum preventive maintenance frequency for each of pieces of equipment if breakdown time is normally distributed.

Should he lower her advertising budget : Cloris employs one sales representative at a salary of $40,000 per year. If Johnson reduces advertising budget by $20.000 she expects to 75 fewer units. Should he lower her advertising budget.

Determine theoretical number of workstations : An insurance company uses accompanying tasks to process paperwork. Forty claims need to be processed in an eight-hour day. Determine theoretical number of workstations.

Which of three workstations has highest aggregate workload : Which of three workstations, W, X, or Y, has highest aggregate workload, also thus serves as bottleneck for CKC.

Finco must determine how much investment undertake : Finco must determine how much investment also debt to undertake during next year. Each dollar invested reduces NPV of company by 10¢, also each dollar of debt increases NPV by 50¢.

Illustrate what is expected return on northern states stock : Current stock price is $50.50 per share. If dividend is projected to grow at 3.5% annually, illustrate what is expected return on Northern States stock.

User Account

All Pages