Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e

19. Implementing and
    Controlling Marketing
    Plans: Evolution and
    Revolution

Text © The McGraw−Hill

Companies, 2002

Implementing and Controlling Marketing Plans: Evolution and Revolution 575

b. What would happen to total profits if Tapco stopped

selling Product A but continued to sell 4,000 units of

Product B? What happens to total profits if the firm

stops selling Product B but continues to sell 5,000

units of Product A? (Hint: To stop selling a product

means that the quantity sold would be zero.)

c. If the firm dropped Product B and increased the price

of Product A by $2.00, what quantity of Product A

would it have to sell to earn a total profit as large as it

was originally earning with both products? (Hint:

Change values in the spreadsheet to reflect the changes

the firm is considering, and then use the What If

analysis to vary the quantity of Product A sold and

display what happens to total profit.)

For additional questions related to this problem, see

Exercise 19-3 in the Learning Aid for Use with Basic Mar-

keting,14th edition.