A brewer is launching a new product: brewed ginger ale with a low alcohol content. The brewer plans to spend $4 million promoting this product this year,
which is expected to expand the sales of this product to $11 million this year and $8 million next year. They do expect there will be loss of sales of
$1 million this year and next year in their other products as customers switch to drinking the new ginger ale. The gross profit margin for the new ginger ale is 40%, the gross profit margin of all of the brewer's other products is 30%, and the brewer's marginal corporate tax rate is 35%. What are incremental earnings arising from the promotional campaign this year?
A) $1.625 million
B) $1.26 million
C) $2.11 million
D) $4.40 million
Answer: A
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Which of the following encourages cooperation?
A. individual rewards B. threats C. pursuing a joint product D. none of these
Marcus is writing a persuasive message asking his employees to complete an online company survey. Which of the following should he AVOID when writing his message?
a. Keeping paragraphs short. b. Using concrete nouns and action verbs. c. Focusing repeated attention on the benefits to the company. d. Using an inductive outline.