your company has launched a new prodouct rs10,000on advertisement it would derive benefit fromyour accounts?

Answer 1

I think your are trying to ask the justification of advertising on product launch in terms of the financials??

Well, if thats the case, when a product is launched, there is an extensive R&D done much before it is manufactured and there involves various factors like Material cost, Manpower cost, Transportation cost and Sales cost in determining the selling price after considering the manufacturing cost and distribution cost to eventually offer it to the cosumer. Hence the Marketing cost is embedded in the cost price and Product awareness and reach are very essential before a consumer reaches to buy a product and this is achieved only by way of advertising.
Say for example, a mineral water bottle with MRP of Rs10 actually costs not more than Rs2 for the manufacturer which includes all attributes and the major balance of the cost goes towards establishing a distribution channel and Marketing expenses and all this is absorbed by the end user.

Answer 2

So, what's the question?