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What would be breakeven acquisition rate for each segment

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Absolut launched three vodkas to the market: Level, Absolut, and Fris. They expected to sell the vodkas in the ratio 3:5:12 respectively. The prices of the bottles will be $34, $19, and $7, and have variable costs of $10, $8, and $4, respectively. They plan to spend $20M in R&D, $10M in equipment and $175M in advertising to acquire 10 million new customers.

Problem a. If the company is considering spending $50M next year targeted to an audience of 3 million customers, what would be the breakeven acquisition rate for each segment to justify spending $50M.

Reference no: EM132993316

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