Homework SourseThe difference between current sales 7000 6 per dinner and t
The difference between current sales $7000 (@$6 per dinner) and the adjusterd amounth on the spreadsheet $12000 @ $6 per dinner could be the extra sales that could be captured by increased advertising. You estimate a low cost promotion program could be inititated for $2000 a month. Given this information, would it be worth while to advertise? Explain.
| Fraction that will buy | Price | Frequency (average for sample) | Total Demand | Revenue per month | |
| Price 1 | 0.175 | $6 | 2.00 | 2,100 | $12,600 |
| Price 2 | 0.168 | $8 | 1.75 | 1,764 | $14,112 |
| Price 3 | 0.105 | $10 | 0.50 | 315 | $3,150 |
| Price 4 | 0.07 | $12 | 0.20 | 84 | $1,008 |
Solution
The difference between current sales $7000 (@$6 per dinner) and the adjusterd amounth on the spreadsheet $12000 @ $6 per dinner could be the extra sales that could be captured by increased advertising.
ANS-
| Fraction that will buy | Price | Frequency (average for sample) | Total Demand | Revenue per month |
