Grable Corporation Produces and Sells a Single Product

question 104

Essay

Grable Corporation produces and sells a single product. Data concerning that product appear below: Fixed expenses are $628,000 per month. The company is currently selling 5,000 units per month.
Required:
The marketing manager would like to cut the selling price by $18 and increase the advertising budget by $45,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 800 units. What should be the overall effect on the company's monthly net operating income of this change? Show your work!

Understand the role and structure of logical reasoning in sales presentations.

Identify the purposes and components of a marketing plan within the sales context.

Understand how personalizing relationships and utilizing visual aids can enhance sales presentations and customer retention.

Recognize the significance of rehearsals and addressing potential interruptions for maintaining the effectiveness of sales presentations.

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Definitions:

Primary Appeal

The main or most compelling reason or feature used to persuade or attract attention in marketing or argumentation.

Superior Service

Providing a level of service to customers that exceeds expectations, often characterized by high quality, efficiency, and a personalized approach.

Favorable Price

A price point that is advantageous or beneficial to the buyer, often due to being lower than average market prices or offering a great value for the cost.

Original Approach

A novel method or strategy developed to address a problem or enhance a process.