I’m stuck on a Marketing question and need an explanation.
Financial/Analytical Question #2 (FAQ#2): note that there are conceptual issues in each of the Financial/Analytical Assignments. You should specifically identify any assumptions that you make and justify the decision(s) made.
This FAQ explores some marketing implications of the concept of “price elasticity of demand”. Consider the 2 following income statements (limited in detail) of 2 different brands (DEF, XYZ) of the Furton Corporation:
Brand “DEF” Brand “XYZ”
FY2019 Income Statement FY2019 Income Statement
Revenue: $1,250,000.00 $1,000,000.00
No. of units sold/yr.: 2,500 4,000
Variable costs: $850,000.00 $350,000.00
Contribution: $400,000.00 $650,000.00
Please find the attachment below and answer the questions.