What would the net marketing contribution be

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Overton Enterprises sells widgets into a marketplace where total demand is 12 million. Overton's market share is 12 ½ percent; the selling price per widget is $40 and the variable costs per widget are $25. Overton spends $7 million on marketing expenses. If Overton lowered its price by 10%, causing a boost in market share to 15%, what would the net marketing contribution be?

Reference no: EM132475091

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