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Ludmilka [50]
3 years ago
15

​GEICO, the​ number-two auto insurer with ​$15 billion in revenue last​ year, spent ​$0.80 billion on advertising that year and

plans to continue spending the same percentage of sales on advertising next year. The average​ advertising-to-sales ratio for the insurance industry is 0.30 percent of sales. If GEICO projects ​$17 billion in sales next​ year, using the​ percentage-of-sales method of advertising​ budgeting, how much will the company budget for advertising if basing it on projected​ sales?
Business
1 answer:
goblinko [34]3 years ago
3 0

Answer:

The company will budget $0.91 billion for advertising

Explanation:

Determine the initial percentage of sales spent in advertising is as shown;

initial percentage of sales=(amount spent in advertising/total revenue)×100

where;

amount spent in advertising=0.8 billion

total revenue=15 billion

replacing;

initial percentage of sales=(0.8/15)×100=5.33%

Determine forecasted percentage of sales as shown;

forecasted sales=initial percentage×forecasted sales

forecasted advertising=5.33% ×17 billion

forecasted advertising=$0.91 billion

The company will budget $0.91 billion for advertising

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enyata [817]

Answer:

d) A and B are both correct.

Explanation:

Efficient quantity of soybeans  is a quantity supplied to the market at which the price the supplier of soybeans is ready to take is what the customers are ready to pay. This happens mostly when the market is experiencing a stable equilibrium to a certain degree in the soybean market, that is a state of rest. The supply price is, its marginal cost and demand price is the marginal benefit of an additional unit.

4 0
3 years ago
Which of these is an example of an entrepreneur?
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Option A. Jessie has the idea for a new phone app so he spend his money to set up a business
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3 years ago
Recognizing the importance of small businesses, Congress created the _____ to offer direct services to owners of these enterpris
nevsk [136]
Are their any options for the blank space that you could use?
3 0
4 years ago
A commercial bank will loan you​ $17,500 for two years to buy a car. The loan must be repaid in 24 equal monthly payments. The a
timama [110]

Answer:

$775.61

Explanation:

To calculate the monthly payments, you can use the following formula:

P= (r*PV/(1-((1+r)^-n))

P= Payment

PV= Present value: $17,500

r=interest rate: 6%/12= 0.5%

n= number of periods: 24

P= (0.005*$17,500)/(1-((1+0.005)^-24))

P= 87.5/0.112814

P= $775.61

The amount of the monthly payments is $775.61.

3 0
4 years ago
Zurasky Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below: Alternati
allochka39001 [22]

Answer: $57,600

Explanation:

The differential Cost of Alternative B over Alternative A can be calculated by subtracting the various costs of Alternative B from A and then summing them up.

Materials

= Alternative B costs - Alternative A Costs

= 56,000 - 24,000

= $32,000

Processing Costs

Alternative B costs - Alternative A Costs

= 30,000 - 30,000

= $0

Equipment Rental

= Alternative B costs - Alternative A Costs

= 28,100 - 10,200

= $17,900

Occupancy Costs

= Alternative B costs - Alternative A Costs

= 26,800 - 19,100

= $7,700

Adding them all up we get,

= 7,700 + 17,900 + 32,000

= $57,600

$57,600 is the differential cost of Alternative B over A.

8 0
3 years ago
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