Justine runs a business selling hockey sticks in Canada and generally expects to sell about $15,000...

Justine runs a business selling hockey sticks in Canada and generally expects to sell about $15,000 worth of sticks per month (Canadians play roller hockey in the summer). In June, she runs a radio advertising campaign which costs $1500. As part of her advertising campaign she offers a $5 discount on any hockey stick (the sticks retail for $50 normally with a margin of 35%). In June she records sales of $22,005.

What is the lift % from the advertising campaign in both dollars and units?
What is the cost to Justine per incremental sales dollar she saw if you ignore the discount?
What is the Return on Marketing Investment if you factor in the discount?
If she could get the manufacturer to drop the price she pays for hockey sticks by $1.50, what would be the pass through percentage of her discount?

Expert Solution

Feedback would be appreciated.

ekkarill92 answered 1 year ago

Ashley runs a small business in Boulder, Colorado, that makes snow skis. She expects the business...

Ashley runs a small business in Boulder, Colorado, that makes snow skis. She expects the business to grow substantially over the next three years. Because she is concerned about product liability and is planning to take the company public in year 2, she currently is considering incorporating the business. Pertinent financial data are as follows: Year 1 Year 2 Year 3 Sales revenue $150,000 $320,000 $600,000 Tax-free interest income 5,000 8,000 15,000 Deductible cash expenses 30,000 58,000 95,000 Tax depreciation...

The Mason Company produces and expects to sell 10,600 units of its product. Variable selling and...

The Mason Company produces and expects to sell 10,600 units of its product. Variable selling and administrative expense is $3.70 per unit sold and fixed selling and administrative expense is $50,000 per month. Included in the $50,000 fixed selling and administrative expense is a depreciation of $20,000. The budgeted selling and administrative cash payments for November is: $69,220. $39,220. $39,480. $89,220.

Contrail Air Inc. runs a small drone manufacturing business. For this year, the company expects real...

Contrail Air Inc. runs a small drone manufacturing business. For this year, the company expects real net cash flow of $210,000. The company expects its cash flow to erode at a rate of 5% percent per year in perpetuity. The appropriate real discount rate for the company is 12% percent. Assume all cash flows received at the end of the year. What is the present value of the cash flows? Cash flow $210,000 Cash flow growth rate -5% Required return...

A company exports laptops and runs the business in Punjab and is about to introduce a...

A company exports laptops and runs the business in Punjab and is about to introduce a cell phone all across the Pakistan and YOU are given the opportunity to execute the launch. Previously, your company has the reputation to maintain the efficiency-responsiveness balance. · Propose your strategy. · Explain how would you use the six supply chain drivers to maintain the company reputation? · If you have to outsource any one function, which function would it be and why? Starter...

Tonya Jefferson, a sole proprietor, runs a successful lobbying business in Washington, D.C. She doesn't sell...

Tonya Jefferson, a sole proprietor, runs a successful lobbying business in Washington, D.C. She doesn't sell many business assets, but she is planning on retiring and selling her historic townhouse, from which she runs her business in order to buy a place somewhere sunny and warm. Tonya's townhouse is worth $1,000,000 and the land is worth another $1,000,000. The original basis in the townhouse was $600,000, and she has claimed $250,000 of depreciation deductions against the asset over the years....

Emma runs a business selling scarves. She purchases the scarves directly from scarf makers in Cambodia...

Emma runs a business selling scarves. She purchases the scarves directly from scarf makers in Cambodia and sells them in makers markets in Victoria. The following transactions have taken place during the 2019/20 income year. Please advise Emma as to the tax consequences of each of these transactions (from (a)-(d)), referring where appropriate to legislation in your answer: (a) Emma purchased $3,000 of scarves on 5 July 2019 from a scarf maker in Cambodia. The scarves were loaded onto a...

Jayden is thinking about opening a cupcake store. She expects to sell 1000 cupcakes a month...

Jayden is thinking about opening a cupcake store. She expects to sell 1000 cupcakes a month at $4.00 per cupcake. Her anticipated expenses are as follows: Rent: $1000/ month Salaries to her employees: $800/ month Ingredients: $400/ month Jayden is currently working at Dona Ana Community College and is currently netting (after taxes) $2000/ month. Calculate her anticipated Total Revenue and show work. (2 points) Calculate her Accounting profit and show work. (2 points) Calculate her Economic profit and show...

You are about to open your business and ventures into technology industry. Your selling products could...

You are about to open your business and ventures into technology industry. Your selling products could include computers, smartphones, IT services, e-commerce, software and hardware, games, robotic and any other business model that can be viewed include in technology industry. Consider the following factors: You decided to operate in 500 square feet retail space in one of the popular shopping malls located in Cheras, Kuala Lumpur. The rent is RM8000 per month. To create a business strategy and explore the...

Wiremu operates a small business selling natural health products. He recently heard about one of the...

Wiremu operates a small business selling natural health products. He recently heard about one of the latest trends - an expensive new organic herbal tea called T4. While looking through a trade magazine Wiremu saw an advertisement, promoting the supply of T4 by a company called Eaze Supplies. The advertisement stated, amongst other things, “Great Offer” and “Prices start at $100 per kg”. Wiremu phoned up Eaze Supplies and spoke to Sally who was Head of Sales, and asked whether...

Question