there are 4 ways listed to influence demand: pricing, advertising and promotion, backlogs or reservations, development of complementary offerings. Discuss why these are effective.

In the explanation there are points of view of why every aspect is effective when it comes to influence the demand of a good.

Explanation:

First of all, the pricing of the product will influence the demand by increasing it or decreasing it. It will depend on the type of good, if it is inferior or luxury and also in the prices of the substitutes of the product. So having a good pricing strategy according to the ones of the competitors will always give good results.

Secondly, the advertising and promotion strategy will also influence the demand of the product by increasing it in the case that the marketing campaign works well because it will caught the consumers attention, or it could also decrease the demand if the advertising is bad or if it reflects something bad from the brand.

To continue, the backlogs or reservations will affect the demand by increasing thanks to the fact that the consumers will feel safe by having it secure that they will obtain the product so that it a thumbs up.

Finally, the development of complementary offerings will affect the demand of the product by increasing it in the case that those other offerings are good enough to persuade the customer to buy all together and that will cause the sales to rise.

A (5,250) sold at split-off

B 22,625 continue

C (10,400) sold at split-off

Explanation:

Result for further processing:

quantity ( further process price - raw price) less further processing cost

Product A

13,800 pounds x (29.5 - 24) - 81,150 = (5,250)

Product B

21,500 pounds (24.50 - 18) - 117,125 = 22,625

Product C

5,000 gallon ( 38.5 - 30) - 52,900 = (10,400)

We must understand that the join processing cost are already incurred (sunk) therefore, not relevant. We hould check if the further process increases or not the gross profit.

As B is the only which increase the gross profit we continue the processing. THe other product based on our cost structure are not viable