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Annual Turn Over = Rs 30 cr

Number of months for promotional scheme = 2

(Assumption) Hence the promotion scheme lasts for 2 months (October and November) = 2 * 2.5 cr
= 5 cr

Increase in sales expected = 30% during promotion of 5 cr = 1.5 cr

Total Increased Sales = 5 + 1.5 = 6.5 cr (due to promotion)

Promotional Spend = 1000000 + 10000 (per coupon holder consolation prize) + 200000 (Admin)

Let the number of coupons be `C`

10 Lakhs + 2 lakhs + 10/100 (C-3) = Promotional Spend (Break Even)

12+.1(C-3) = 4/100 * 30* 100

12+.1(C-3) =120

C-3 = 1080

C= 1083 (total coupon breakeven)

Promotional Spend = Additional Sales Realised

Promotional Spend = 4/100 * 30 * 100 = 120 lakhs

Promotional Spend Per Coupon = 120 lakhs/1083 = Rs 11080 .33

Sales to be realised per coupon to break even = 1.5 Cr / 1083 = Rs 13850.41

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