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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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Demander is the answer :)
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A statistical software company is planning on updating Version 8.1 of its software and wants to know what features are most impo
torisob [31]

Answer:

Answer for the question:

A statistical software company is planning on updating Version 8.1 of its software and wants to know what features are most important to users. The company's managers have the email addresses of 10000 individuals, mostly faculty at universities, for whom they have supplied free courtesy copies of Version 8.1. They email these 10000 individuals and ask them to complete a survey online. A total of 183 of these individuals complete the survey.

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3 0
3 years ago
If costs are 85% of sales (and profit is 15%), what is the amount of extra sales needed to equal $1,200 in profit from purchasin
attashe74 [19]

Answer:

$8,000

Explanation:

Given that

Profit = $1,200

Cost = 85% of sales

Profit = 15%

We know that

Sales = Cost + Profit

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What is the relationship between the alpha level, the size of the critical region, and the risk of a type i error?
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4 0
3 years ago
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