Delivering all the check all
together is a classic example of Bundling. It is a marketing strategy that
joins products or services together in order to sell them as a single combined
unit this allows the convenient purchase of several products and/or services
from one company. The services and products are practically related, but they
can also be of dissimilar products which appeal to one group of customers.
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<span>The goal of the campaign or promotion is to build awareness and inform consumers about a company and its product offerings</span>
In order to see if there is still increase in the sale compared with the money spent of campaign , Alonzo is evaluating the effectiveness of the plan. The evaluation of effectiveness is one of the 6 steps of the promotional campaign.
Answer:
Given:
Sales budget = 5,900 units
Variable selling and administrative expense = $11.20 per unit
Fixed selling and administrative expense = $131,570 per month
Depreciation = $16,520 per month
Therefore, we'll compute cash disbursements for selling and administrative expenses using the following formula:
<em>Cash disbursements = Variable selling and administrative expense × Sales budget + Fixed selling and administrative expense - Depreciation</em>
Cash disbursements = $11.20 × 5,900 + $131,570 - $16,520
<u><em>Cash disbursements = $181,130</em></u>
