The laundry detergent Era has sales of $5,000,000 within an industry that has sales of $50,000,000 across all brands. Era's gross margin is $2,500,000 and the industry's total marketing effort is $10,000,000. If Era wants to expand their market share by 5 share points, how much more do they need to spend on their marketing effort? What is their gross margin (gain or loss) if they succeed in capturing their target market share?

The laundry detergent Era has sales of $5,000,000 within an industry that has sales of $50,000,000 across all brands. Era's gross margin is $2,500,000 and the industry's total marketing effort is $10,000,000. If Era wants to expand their market share by 5 share points, how much more do they need to spend on their marketing effort? What is their gross margin (gain or loss) if they succeed in capturing their target market share?

The laundry detergent Era has sales of $5,000,000 within an industry that has sales of $50,000,000 across all brands. Era's gross margin is $2,500,000 and the industry's total marketing effort is $10,000,000. If Era wants to expand their market share by 5 share points, how much more do they need to spend on their marketing effort? What is their gross margin (gain or loss) if they succeed in capturing their target market share?



A. $500,000; $250,000

B. $750,000; $500,000

C. $750,000; -$125,000

D. $500,000; $750,000

E. $500,000; $0



Answer: B


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