On Sheet Q4 -
Now, just for fun, let’s assume Jumanji decides to run a promotion in Month 3 where they reduce the average price per pint by 40%. Further, they are considering giving all of their kegs away for free for the first four months to generate additional demand further down the road. They anticipate these promotional tactics will increase pint sales by 15% and keg sales by 12% in Months 9-12 (hint: multiply the forecasted number of units by these increases, don’t change the production capacity percentages you’ve used to actually forecast unit sales). How does this change their profitability at the end of year one? Would you recommend they implement these promotions?
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