The difference between current sales $7000 (@$6 per dinner) and the adjusterd am

Question

The difference between current sales $7000 (@$6 per dinner) and the adjusterd amounth on the spreadsheet $12000 @ $6 per dinner could be the extra sales that could be captured by increased advertising. You estimate a low cost promotion program could be inititated for $2000 a month. Given this information, would it be worth while to advertise? Explain.

Fraction that will buy Price Frequency (average for sample) Total Demand Revenue per month Price 1 0.175 $6 2.00 2,100 $12,600 Price 2 0.168 $8 1.75 1,764 $14,112 Price 3 0.105 $10 0.50 315 $3,150 Price 4 0.07 $12 0.20 84 $1,008

Explanation / Answer

The difference between current sales $7000 (@$6 per dinner) and the adjusterd amounth on the spreadsheet $12000 @ $6 per dinner could be the extra sales that could be captured by increased advertising.

ANS-

Fraction that will buy Price Frequency (average for sample) Total Demand Revenue per month

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