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Topic: Business
Number of pages / Number of words: 6 / 1506
Essay's paper body

(Appendix A)

-Cannibalization ? this will take into account the fact that consumers will not buy both tube and aerosol and therefore aerosol cannibalizes sales from tube gel.

-Cost of Advertising ? increased percentage of sales dollars (35%) will apply to both alternatives plus estimated other media (eg...


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Unit Contribution for 5.5 oz tube, 5.5 oz aerosol, and 10 oz aerosol

-5.5 oz gel tube

Retail $3.95

$2.37 (40% margin)

Mfr. Price $1.90 (20% margin)

Variable Cost $0.40

Contribution $1.50 ($0.27 per ounce)

-5.5 oz gel aerosol

Retail $3.50

$2.10 (40% margin)

Mfr. Price $1.68 (20% margin)

Variable Cost $0...


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General points of the essay

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