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Samita.Brown Samita.Brown
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Overton Enterprises sells widgets into a marketplace where total demand is 12 million.  Overton’s market share is 12 ½ percent; the selling price per widget is $40 and the variable costs per widget are $25.  Overton spends $7 million on marketing expenses.  If Overton lowered its price by 10%, causing a boost in market share to 15%, what would the net marketing contribution be?
a.   $7 million
b.   $12.8 million
c.   $13.95 million
d.   $19.8 million
e.   $132 million
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Market Based Management

Market Based Management


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D-manD-man
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Samita.Brown Author
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7 years ago
Correct!
Market-Based Management, 5th Edition (Best)
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