Cloris employs one sales representative at a salary of, Ask an Expert

Management Studies

Q. Cloris Tool also Die, located in Cleveland, OH enjoys a 4% share of a total market of 75,000 class C filtration units per year (retail price is $2,000 per unit). Jenna Johnson, president, estimates which variable production costs amount to $750 per unit also fixed manufacturing cost total $275,000 per year. In addition, shipping also packaging cost is $70,000 also annual advertising budget is $100,000. Cloris employs one sales representative at a salary of $40,000 per year.

If Johnson reduces advertising budget by $20.000 she expects to 75 fewer units. Should he lower her advertising budget?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9312485

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