A Textile Manufacturer Plans to Improve Revenue from Its Heating

question 28

Short Answer

A textile manufacturer plans to improve revenue from its heating blankets, sold primarily in the northern areas of the United States by increasing its marketing activities. A total of
$170,000 spent now in marketing is expected to generate new revenue of $400,000 per year. The MARR is 6% per year and the evaluation period is 9 years. Use simple payback analysis to determine the acceptability of the marketing investment.

---

Definitions:

Loneliness

A complex and usually unpleasant emotional response to isolation or lack of companionship.

Psychological Disorders

Mental disorders characterized by patterns of behavior or thought that are both dysfunctional and distressing.

Poverty Line

A threshold set by an authority that delineates the minimum level of income required to afford basic living expenses, varying by country and context.

Generalized Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about a variety of things, not limited to one specific issue or situation.