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The group product manager for ointments at American Therapeutic Corporation was reviewing price and promotion alternatives for two products: Rash- Away and Red-Away. Both products were designed to reduce skin irritation, but Red-Away was primarily a cosmetic treatment whereas Rash-Away also included a compound that eliminated the rash. The price and promotion alternatives recommended for the two products by their respective brand managers included the possibility of using additional promotion or a price reduction to stimulate sales volume. A volume, price, and cost summary for the two products follows:
Rash-Away Red-Away
Unit price $2.00 $1.00Unit variable costs 1.40 0.25Unit contribution $0.60 $0.75Unit volume 1,000,000 units 1,500,000 units
Both brand managers included a recommendation to either reduce price by 10 percent or invest an incremental $150,000 in advertising.
What absolute increase in unit sales and dollar sales will be necessary to recoup the incremental increase in advertising expenditures for Rash-Away? For Red-Away?
The triangular plate ABC is supported by ball and socket joints at B and D and is held in the position shown by cables AE and CF. If the force exerted by cable AE at A is 1000N , determine the moment of the force about line joining points D and B.
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This job examines how depression is often referred to as being endogenous (biological) or reactive (psychological) in origin.
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Reflect upon your own research experiences in the education program and your continued role as an educator-researcher.
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