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Company A has developed a new item. They sell the item directly to multiple retailers who sell them to end-users. The following details their first year sales results and expenses. Gross Sales Revenue to Retailers $ Trade Promotion to Retailers (10% of the list price) $ Net Sales Revenue to Retailers $ Cost of Goods Sold Advertising Expense Expense for Consumer Promotions Corporate Overhead Research & Development Costs Sales & Marketing Administration Expenses List Price to Retailers Number of Cookstoves Sold to Retailers es $ ssssss $ $ $ $ $ $20/unit $ 3,000,000.00 300,000.00 2,700,000.00 1,200,000.00 200,000.00 100,000.00 200,000.00 100,000.00 300,000.00 150,000.00 Question: Assume Company A spends an additional $100,000 on advertising and they think they can sell 80,000 more items to the retailers. They will continue to offer retailers a trade promotion of 10% promotion of the items list price. What will be the Total Marketing and Sales Expenses, Net Marketing Contribution, Marketing ROS, and Marketing ROI?

Company A has developed a new item. They sell the item directly to multiple retailers who sell them to end-users. The following details their first year sales results and expenses. Gross Sales Revenue to Retailers $ Trade Promotion to Retailers (10% of the list price) $ Net Sales Revenue to Retailers $ Cost of Goods Sold Advertising Expense Expense for Consumer Promotions Corporate Overhead Research & Development Costs Sales & Marketing Administration Expenses List Price to Retailers Number of Cookstoves Sold to Retailers es $ ssssss $ $ $ $ $ $20/unit $ 3,000,000.00 300,000.00 2,700,000.00 1,200,000.00 200,000.00 100,000.00 200,000.00 100,000.00 300,000.00 150,000.00 Question: Assume Company A spends an additional $100,000 on advertising and they think they can sell 80,000 more items to the retailers. They will continue to offer retailers a trade promotion of 10% promotion of the items list price. What will be the Total Marketing and Sales Expenses, Net Marketing Contribution, Marketing ROS, and Marketing ROI?

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
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Company A has developed a new item. They sell the item directly to multiple retailers who sell them to end-users. The following details their first year sales results and expenses. Gross Sales Revenue to Retailers Trade Promotion to Retailers (10% of the list price) $ Net Sales Revenue to Retailers Cost of Goods Sold Advertising Expense Expense for Consumer Promotions Corporate Overhead Research & Development Costs Sales & Marketing Administration Expenses es es es List Price to Retailers Number of Cookstoves Sold to Retailers $ $ $ $ $ es es es $ $ $ $20/unit $ 3,000,000.00 300,000.00 2,700,000.00 1,200,000.00 200,000.00 100,000.00 200,000.00 100,000.00 300,000.00 150,000.00 Question: Assume Company A spends an additional $100,000 on advertising and they think they can sell 80,000 more items to the retailers. They will continue to offer retailers a trade promotion of 10% promotion of the items list price. What will be the Total Marketing and Sales Expenses, Net Marketing Contribution, Marketing ROS, and Marketing ROI?
Transcribed Image Text:Company A has developed a new item. They sell the item directly to multiple retailers who sell them to end-users. The following details their first year sales results and expenses. Gross Sales Revenue to Retailers Trade Promotion to Retailers (10% of the list price) $ Net Sales Revenue to Retailers Cost of Goods Sold Advertising Expense Expense for Consumer Promotions Corporate Overhead Research & Development Costs Sales & Marketing Administration Expenses es es es List Price to Retailers Number of Cookstoves Sold to Retailers $ $ $ $ $ es es es $ $ $ $20/unit $ 3,000,000.00 300,000.00 2,700,000.00 1,200,000.00 200,000.00 100,000.00 200,000.00 100,000.00 300,000.00 150,000.00 Question: Assume Company A spends an additional $100,000 on advertising and they think they can sell 80,000 more items to the retailers. They will continue to offer retailers a trade promotion of 10% promotion of the items list price. What will be the Total Marketing and Sales Expenses, Net Marketing Contribution, Marketing ROS, and Marketing ROI?
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