They capture the additional market share

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Reference no: EM131787447

L’Oreal, a major company in the makeup industry, has sales of $14,500,000. The makeup industry as a whole has sales of $50,000,000. L’Oreal's gross margin is $4,350,000, and the total marketing effort of the makeup industry is $10,000,000. If L’Oreal wishes to expand its market share by 3 share points,

(a) How much more do they need to spend on their marketing effort, and

(b) What is their gross margin gain or loss if they capture the additional market share?

Reference no: EM131787447

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