CanTe Potato Chips is thinking of distributing a coupon on its 454 g bag of regular crinkled chips. Currently, the cost
Posted: Sat Feb 19, 2022 2:43 pm
CanTe Potato Chips is thinking of distributing a coupon on its
454 g bag of regular crinkled chips. Currently, the cost of
producing a bag of chips is $0.60, with typical expenses of $0.26
per bag. CanTe sells the bag to retailers for $1.40 per bag. The
coupon is in the amount of $0.45, while retailers are offered $0.13
for handling expenses. CanTe forecasts an increase in sales of
400,000 bags with the coupon, incurring total marketing expenses of
$92,000. What is its profit (or loss) per unit if CanTe goes
forward with the coupon? For full marks your answer(s) should be
rounded to the nearest cent.
Profit/loss =
454 g bag of regular crinkled chips. Currently, the cost of
producing a bag of chips is $0.60, with typical expenses of $0.26
per bag. CanTe sells the bag to retailers for $1.40 per bag. The
coupon is in the amount of $0.45, while retailers are offered $0.13
for handling expenses. CanTe forecasts an increase in sales of
400,000 bags with the coupon, incurring total marketing expenses of
$92,000. What is its profit (or loss) per unit if CanTe goes
forward with the coupon? For full marks your answer(s) should be
rounded to the nearest cent.
Profit/loss =