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Sales over the period of the promotion

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Reference no: EM131226165

BP is a soft drink selling at $1.20 a litre. the margin is 10 cents and the price elasticity is -4. assuming no fixed costs or competitor response, would a discount of 12.5% make money?

Is the promotion still profitable if sales over the period of the promotion re 1 million and fixed costs for the promotion are $40,000, ignoring competitor responses?

Reference no: EM131226165

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