Business, 09.09.2019 18:30 Jadamachado45

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 $1.00 unit variable costs $1.40 $0.25 unit contribution $0.60 $0.75 unit 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?

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