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management has decided to use newspapers (rather than television) to promote the product
in the introductory year in major metropolitan areas that account for 65 percent of US
breakfast drink volume. Newspaper advertising will carry a coupon that will entitle the
consumer to receive $0.20 off the price of the first can purchased. The retailer will receive
the regular margin and be reimbursed by Diversified Citrus Industries. Past experience
indicates that for every five cans sold during the introductory year, one coupon will be
returned (20% redemption rate). The cost of the newspaper advertising campaign
(excluding coupon returns) will be $250,000...
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