The evangeline company makes two products, x and y, from a common input, z. in march, evangeline used 30,000 pounds of z to make 20,000 pounds of x and 10,000 pounds of y. the cost of z was $1.00 per pound and x and y can be sold for $7.50 and $10.00, respectively; evangeline incurred additional processing costs of $30,000 to further process x and $20,000 to further process y. using the net realizable value method, how much of the cost of z should be allocated to x?

This activity is important because as a marketing manager, you must allocate resources to reach your target market. during the strategic marketing process, managers move through three important phases to determine how to optimally allocate resources: a planning phase, an implementation phase, and an evaluation phase. in this interactive exercise, you are asked to review various strategic marketing actions and determine where in the strategic marketing process the action would occur. the goal of this exercise is to demonstrate your understanding of the strategic marketing process and related marketing actions.