Given the above information in Q1 Shannon s wants to

Last updated: 12/3/2023

Given the above information in Q1 Shannon s wants to increase its sales to retailers by 20 in the next year Management estimates that the incremental promotion program required to generate sufficient demand to boost sales by 20 will be 60 000 exclusive of commission 59 882 43 244 Personal Selling Costs Consumer Advertising Trade Promotion Sales Promotion 25 000 Shannon s will need to hire an additional salesperson paid a salary and commission and provide some added administrative support The salesperson s salary plus administrative support will cost about 60 000 per year The salesperson s commission will be the equivalent of 0 05 per six pack sold Unit variable costs exclusive of the salesperson s commission are the same as in Q1 The incremental costs of consumer advertising trade promotion and sales promotion necessary to support sales in the new market will be substantial as indicated in the table above How many six packs must be sold to break even on the incremental costs that are anticipated