Giant company has three products, a, b, and c. the following information is available: cookbook travel book classics sales $ 60 comma 000 $ 99 comma 000 $ 22 comma 000 variable costs 40 comma 000 52 comma 000 15 comma 000 contribution margin 20 comma 000 47 comma 000 7 comma 000 fixed costs: avoidable 11 comma 000 15 comma 000 3 comma 000 unavoidable 11 comma 000 10 comma 000 5 comma 400 operating income $( 2 comma 000 ) $ 22 comma 000 $(1 comma 400) giant company is thinking of dropping product c because it is reporting a loss. assuming giant drops product c and does not replace it, operating income will

Total marketing effort is a term used to describe the critical decision factors that affect demand: price, advertising, distribution, and product quality. define the variable x to represent total marketing effort. a typical model that is used to predict demand as a function of total marketing effort is based on the power function: d = axb suppose that a is a positive number. different model forms result from varying the constant b. sketch the graphs of this model for b = 0, b = 1, 0< b< 1, b< 0, and b> 1. (we encourage you to use excel to do this.) what does each model tell you about the relationship between demand and marketing effort? what assumptions are implied? are they reasonable? how would you go about selecting the appropriate model?