Management of Delaune Corporation Is Considering a New Product, an Outdoor

question 55

Essay

Management of Delaune Corporation is considering a new product, an outdoor speaker that would have a selling price of $45 per unit and projected sales of 70,000 units. Launching the new product would require an investment of $200,000. The desired return on investment is 12%.
Required:
Determine the target cost per unit for the outdoor speaker.

Understand the importance of crisis management in public relations.

Identify the different approaches and methods for promotion budgeting.

Explain the objectives of advertising campaigns and strategies for measuring their success.

Understand the use of personal selling as a tool in building customer relationships.

---

Definitions:

Aggregate Income

The sum of earnings for all people and organizations within a specific economic system.

Consumption Function

A mathematical expression in economics showing how total consumption is related to the gross national income.

Consumption Function

A financial equation that illustrates the correlation between overall consumption and the gross national income.

Aggregate Income

The total income earned by all individuals or entities in an economy, including wages, profits, rents, and investment income, before taxes.