Craylon manufacturing produces a single product that sells for $ 120. variable costs per unit equal $ 30. the company expects total fixed costs to be $60,000 for the next month at the projected sales level of 1 comma 200 units. in an attempt to improve performance, management is considering a number of alternative actions. each situation is to be evaluated separately. suppose that management believes that a $ 10 comma 000 increase in the monthly advertising expense will result in a considerable increase in sales. sales must increase by to justify this additional expenditure.

Why do you think the compensation plans differ at the two firms? in particular, why do you think kaufmann’s pays commissions to salespeople, while parkleigh does not? why does parkleigh offer employees discounts on purchases, while kaufmann’s does not?

This activity is important because as a marketing manager, you must allocate resources to reach your target market. during the strategic marketing process, managers move through three important phases to determine how to optimally allocate resources: a planning phase, an implementation phase, and an evaluation phase. in this interactive exercise, you are asked to review various strategic marketing actions and determine where in the strategic marketing process the action would occur. the goal of this exercise is to demonstrate your understanding of the strategic marketing process and related marketing actions.

In the united states, the most common form of business is the and the form of business that generates most of the sales and profits is the