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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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Ludmilka [50]
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7 0
4 years ago
An aggregate production function shows​ ________. A. the relationship between a​ country's output and its price level B. various
Maru [420]

Answer:

The correct answer is letter "C": the relationship between a​ country's GDP and its factors of production.

Explanation:

The Aggregate Production Function describes the relationship between a country's Gross Domestic Product (GDP) and the factors of production involved in it. Aggregate Production functions are considered physical and human capital, labor, knowledge, social infrastructure, and natural resources. Production increases as a result of increases in capital, natural resources, and labor.

3 0
3 years ago
Silky Inc., which sells custom silk ties designed by famous people, faces a demand curve of Q = 150 – 0.2P, where Q is measured
CaHeK987 [17]

Answer:

The production level that maximizes Silky's profit is 5000 ties.

Explanation:

Hi

First of all, as we have Q(P)=150-0.2P, we need to transcript it as price in function of the quantity so

P(Q)=\frac{150-Q}{0.2}=750-5Q

Then we need to find income function that is I(Q)=Q*P(Q)=750Q-5Q^{2}.  After derivate it I'(Q)=750-10Q.

The optimum level is when we have MC=I'(Q), therefore,

5Q=750-10Q, as we clear it for Q we find that

Q=\frac{750}{15}=50, finally as we have that Q is measured in hundreds of ties, the production level that maximizes Silky's profit is 5000 ties.

4 0
3 years ago
Education is the basic requirement for profession.Explain this statement​
True [87]

Answer:

The answer is below

Explanation:

Education is considered the basic requirement for the profession because, through education, people get to learn the basic knowledge required to perform a profession.

For example, a medical doctor or physician profession requires education in core biological science subjects such as microbiology, human anatomy, medical rehabilitation, dentistry, etc.

Education gives the professional the knowledge to anticipate, predict, and carry out the right solution to any problem that needs to be solved under his or her profession.

For example, a civil engineer needs education in architectural and engineering drawing to translates the drawing into reality or an actual project.

5 0
3 years ago
Mara is a management consultant for a soda manufacturer that wants to expand into health drinks such as green tea and after-work
kirill115 [55]

Answer:

B. "Carefully consider the entry choices over time before making a decision."

Explanation:

Since Mara company specializes in manufacturing sodas, venturing into health drinks is risky and therefore would need a lot of planning, thorough analysis of the target market . Looking into whether there's sufficient demand for it and forecasting future trends with regards to health drinks is also important . Mara should therefore, test venture into this by testing the market and considering entry choices over time before making a decision.

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