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| Topic: |
Business
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| 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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print ads)
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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