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D New Situation Problems Product P P\'Q\' Demand 100 50 100 | 50 Selling Price $

ID: 377345 • Letter: D

Question

D New Situation Problems Product P P'Q' Demand 100 50 100 | 50 Selling Price $90 $100 | 72 80 Raw Materials $45 $4045 40 Product P Product Q • Should the No Hassle Company invest $100,000 to purchase another resource B and add the additional $500/week operating expense to meet this new sales offering Specifically, what is: 1. Projected new product mix 2. Projected new profit (if any) 3. Projected weeks payback (if any) for this investment Show your arguments (spreadsheet etc.) Resource D 15 minutes Resource D 5 minutes Resource C 10 minutes Resource C 7 minutes Resource B 15 minutes Resource A 15 minutes Resource B 14 minutes Resource A 10 minutes Hint- next slide Part A $5 each Part B $20 each Part C $20 each Part D $20 each

Explanation / Answer

Reasons are

1) it is important to position the brand in the minds of people when competition is high. The human has tendency to forget. So reminding the brand name will help people to remember brand. A person will recall the brand name when he is interested in buying product.

2) Message is given to customers in advertising. It could be a benefit of buying a product. The message could be explained in the ad. But in order to explain the message very well to Customers, multiple times advertising will help.