Marketing Expense Budget Marketing Expense BudgetTimothy Donaghy has developed a unique formula for growing hair. His proprietary lotion, used regularly for 45 days, will grow hair in bald spots (with varying degrees of success). Timothy calls his lotion Hair-Again and is selling it via thetelephone and Internet. His major form of marketing is through 15-minute infomercials and Internet advertising. Timothy sells each 16-ounce bottle of Hair-Again for $15 and pays a commission of 3 percent of sales to telephone operators whofield the 1-800 phone calls from potential customers. Fixed marketing expenses for each quarter of the coming year include:Internet banner ads$7,600Telephone operator time5,000Travel2,000In addition, early next year Timothy intends to film and show infomercials on television. He expects the cost to be $12,000 in gquarters 1 and 2, and that the cost will rise to $25,000 in each of quarters 3 and 4. Timothy expects the following unitsales of Hair-Again:Quarter 15,000Quarter 215,000Quarter 340,000Quarter 435,000Required: 1. Construct a marketing expense budget for Hair-Again for the coming year. Show total amounts by quarter and in total for the year. If required, round your answers to two decimal places.Hair-AgainMarketing Expense BudgetFor the Year Ended December 31Quarter 1 Quarter 2 Quarter 3 Quarter 4TotalTotal variable expenseFixed marketing expense:Total fixed expenseTotal marketing expense2. What if the cost of internet ads rises to $16,000 in Quarters 2 through 4? How would that affect variable marketing expense? Fixed marketing expense? Total marketing expense? If no effect, enter "0" and select "no impact".Variable marketing expenseFixed marketing expenseTotal marketing expense

Market expenses means the expenses incurred to sell the product including advertising , sales…

1. Construct a marketing expense budget for Hair-Again for the coming year. Show total amounts by quarter and in total for the year. If required, round your answers to two decimal places. Hair-Again Marketing Expense Budget For the Year Ended December 31 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Total variable expense Fixed marketing expense: Total fixed expense Total marketing expense 2. What if the cost of internet ads rises to $16,000 in Quarters 2 through 4? How would that affect variable marketing expense? Fixed marketing expense? Total marketing expense? If no effect, enter "0" and select "no impact". Variable marketing expense Fixed marketing expense Total marketing expense

1. Construct a marketing expense budget for Hair-Again for the coming year. Show total amounts by quarter and in total for the year. If required, round your answers to two decimal places. Hair-Again Marketing Expense Budget For the Year Ended December 31 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Total variable expense Fixed marketing expense: Total fixed expense Total marketing expense 2. What if the cost of internet ads rises to $16,000 in Quarters 2 through 4? How would that affect variable marketing expense? Fixed marketing expense? Total marketing expense? If no effect, enter "0" and select "no impact". Variable marketing expense Fixed marketing expense Total marketing expense

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 8CE: Timothy Donaghy has developed a unique formula for growing hair. His proprietary lotion, used...

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Marketing Expense Budget

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Timothy Donaghy has developed a unique formula for growing hair. His proprietary lotion, used regularly for 45 days, will grow hair in bald spots (with varying degrees of success). Timothy calls his lotion Hair-Again and is selling it via the telephone and Internet. His major form of marketing is through 15-minute infomercials and Internet advertising. Timothy sells each 16-ounce bottle of Hair-Again for $15 and pays a commission of 3 percent of sales to telephone operators who field the 1-800 phone calls from potential customers. Fixed marketing expenses for each quarter of the coming year include: Internet banner ads $7,600 Telephone operator time 5,000 Travel 3,000 In addition, early next year Timothy intends to film and show infomercials on television. He expects the cost to be $12,000 in quarters 1 and 2, and that the cost will rise to $25,000 in each of quarters 3 and 4. Timothy expects the following unit sales of Hair-Again: Quarter 1 5,000 Quarter 2 15,000…
Timothy Donaghy has developed a unique formula for growing hair. His proprietary lotion, used regularly for 45 days, will grow hair in bald spots (with varying degrees of success). Timothy calls his lotion Hair-Again and is selling it via the telephone and Internet. His major form of marketing is through 15-minute infomercials and Internet advertising. Timothy sells each 16-ounce bottle of Hair-Again for $15 and pays a commission of 3 percent of sales to telephoneoperators who field the 1-800 phone calls from potential customers. Fixed marketing expenses for each quarter of the coming year include: Internet banner ads $7,600Telephone operator time 4,000Travel 3,000 In addition, early next year Timothy intends to film and show infomercials on television. Heexpects the cost to be $10,000 in quarters 1 and 2, and that the cost will rise to $25,000 in eachof quarters 3 and 4. Timothy expects the following unit sales of Hair-Again:Quarter 1 5,000Quarter 2 15,000Quarter 3 40,000Quarter 4…
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