User Account

All Pages

Two different strategies for increasing their profits

Assignment Help Strategic Management
Reference no: EM13650039

3. Gobi Inc. has sales of $40,000,000. The contribution margin is 40% and the fixed costs are $3,000,000. The variable cost per unit is $12. The company is considering two different strategies for increasing their profits:

Spend $2,000,000 in advertising; the results is expected to increase the company's sales by 25% Reduce the price by 20%; the price-demand elasticity is -3.0 Which of the two strategies will generate the highest overall profits?

 

 

Reference no: EM13650039

Questions Cloud

Calculate the total cost using a one-month planning horizon : Calculate the total cost using a one-month planning horizon.
Leadership and team building leadership : Leadership and Team Building Leadership
Discuss some issues in marketing professional services : Bloom and Dalpe (1993) discuss some issues in marketing professional services. What are some of the marketing concepts involved in this article? Provide support for your analysis.
Write a report on the concepts of reference : Write a report on the concepts of reference group influences, demographics and lifestyle theory in the context of an online social community, facebook.Then, based on your findings, make recommendations about how companies can be more effective in the..
Two different strategies for increasing their profits : Two different strategies for increasing their profits
Software and it construction : Software and IT Construction
Are brand extensions good or bad : Are Brand Extensions Good or Bad?
How did schools acting as state ideological apparatus help : How did schools acting as state ideological apparatus help Hitler, how did Nietzsche's ubermench inform the SS?
Complex and detailed words-like scoriation : Given that the Bundrens are ignorant country people without much obvious educaton, speculate on why the author has characters think such dense and specific words.

Reviews

Write a Review

Strategic Management Questions & Answers

  What is a strategic decision

What is a strategic decision and what are its 3 characteristics?

  The next trend in health care marketing

Speculate what the next trend(s) in health care marketing will be. Provide a rationale for your response.

  Explain apple inc.''s business description

Explain Apple Inc.'s business description, objectives, and technological environment.

  Role of leadership in the development

What is the role of leadership in the development and implementation of strategic choice? How can managers most successfully lead their organizations in the development and implementation of selected strategies?

  An example of an industry experiencing a red ocean

Provide an example of an industry experiencing a red ocean.

  Persuasion tactics in a negotiation

When using persuasion tactics in a negotiation.

  What environmentally friendly packaging strategies

1. What environmentally friendly packaging strategies might a firm adopt?

  The theory of comparative advantage

1.Does intra-firm trade contradict the theory of comparative advantage? Why or why not?

  How workplace stress contributes to individual performance

Develop a profile of your personality characteristics and assessment results and summarize the results of the assessments you completed for homework

  Qualitative, quantitative or mixed methods problem

Is the following a problem/purpose statement for a Qualitative, Quantitative or Mixed Methods Problem Statement?

  Find the profit margin

You just sold 1,000,000 pound sterling goods to your customer in England, giving her 180 days of payment term.

  Is this one of the risk associated with globalization

Is this one of the risk associated with globalization and what matters here is the degree of openness business ideas any thought?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd