(a)[9]
Using Appendix 2, Calculate:
- the promotional elasticity for SU beach umbrellas [3]
- the total contribution that Beach Umbrellas generated for SU in the year ending November 2018. [2]
- Using Appendix 3, Calculate: return on capital employed after the change in promotion spending, and state one assumption made. [4]
(b)[12]
Refer to your results from 4(a) and any other information. Discuss whether SU ought to continue manufacturing and selling beach umbrellas.