Husk Inc. is Iowa's leading manufacturer of corn-related novelties and paraphernalia. Husk has decided to break into the lucrative corn market of Nebraska gradually. They plan on introducing Colonel Kernel, the talking corn on the cob, to the Nebraskan market. After negotiating with Nebraskan retailers, Husk expects to sell the product at $6 per unit to them. The cost per unit for Husk is roughly $2.50.

Phil Neely, the resident cornographer who is in charge of promoting the product, will head the Nebraska marketing campaign. Neely estimates that Husk will spend $135,000 on the campaign in addition to their standard fixed expenditures of $20,500.