📊 GMAT Exam Prep

To achieve the highest *net profit* from increased sales after 2 months, while simultaneously ensuring the *lowest marketing expenditure*, which combination of pricing strategy and marketing channel should the business choose?

A Pricing P1 and Marketing M1
B Pricing P1 and Marketing M2
C Pricing P2 and Marketing M1
D Pricing P2 and Marketing M2

✓ Correct Answer: Option D

This question requires calculating outcomes for each of the four combinations. P2 (decrease price 5%, 15% sales increase M1, 10% M2) generates higher sales volume. M2 (Email Marketing, $500 cost, 3% sales increase) has the lowest marketing cost. The combination (P2+M2) would yield the highest net profit despite lower individual sales increase, due to cost efficiency and higher base sales from P2.

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