I was given this exercise: There is a product of KFC for children that is low se

Question

I was given this exercise:

There is a product of KFC for children that is low selling rate. To stimulate the sale, manager set a promotion plan that whenever customer orders that product, they will be awarded a toy (of course for the child).

What I have to do is plan an action plan for this (determine the cost, how profit it will be, how many customers to achieve that...something like this since I'm in Marketing course). It should be in a table.

The numbers are not need to be exactly real, but need to be reasonable and the whole plan is DOABLE.

THE MOST DETAILED ANSWER WILL BE AWARDED.

Explanation / Answer

In order to determine the profit you make from each product, you need to determine the cost of the product. If you purchase your items from a manufacturer for resale, this is a straightforward process. The cost per unit is equal to what you pay for each piece from the manufacturer. If you manufacture the product, calculating the cost per unit requires a few more steps. Calculate the cost of the materials required to produce the product. For example, if you pay $40 for the electronic chips, $20 for paint and $80 for plastic to manufacture 10 pieces, you spend $14 for products. If it takes 10 hours of an employee's time to manufacture 10 pieces and the employee earns $8 per hour, that increases your cost of the item to $22. It costs you $22 in direct labor and parts to manufacture the product.

Once you isolate your cost per product, you can identify the profit earned on each item. Subtract the cost of the product from the sale price of the item. For example, if you sell an item for $40 and it costs your company $22, your profit per unit equals $18.

Targetting Customers:

Since many children as well as their parents move up to you.it's your choice how many bucks or customers you are going to make out of it.

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