1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Which of the following is true? Overhead costs are often affected by many issues and are frequently too complex to be explained
11111nata11111 [884]

Answer:

Overhead costs are often affected by many issues and are frequently too complex to be explained by any one factor.

Explanation:

An overhead cost is not directly defined, to be that of material, or labor, or any other unit, overhead include, many factors, electricity usage, machine hours usage, water usage, or the capacity utilization of machinery, and various other factors. Since its computation and allocation is not clear many a times, a single overhead like that of electricity, has many factors, ideal usage of electricity, or machine hours used in production or simply the total cost of overheads for that month or building or etc: and its utilization. In short, to conclude we can state that overhead costs are complex in nature.

All other options are false.

Final Answer

Overhead costs are often affected by many issues and are frequently too complex to be explained by any one factor.

8 0
2 years ago
Which of the following are reasons that the short-run aggregate supply curve slopes upward?
kaheart [24]

Answer:

The short-run aggregate supply curve slopes upward because of all of the following reasons except a. in the short run, as prices of final goods and services increase, some firms are very slow to adjust their prices, thus their sales increase. b. in the short run, an unexpected change in the price of an important resource can change the cost to firms.

Hope this helps :)

5 0
2 years ago
Eduardo is starting a floral shop and owns a 10-year-old delivery van. He borrows $50,000 from First National Bank, which takes
mylen [45]

Answer: After acquired property

Explanation: The concept of after acquired property refers to personal belongings or properties purchased by an individual who has secured a loan such as mortgage and penned a security agreement that secures the debt with all of his properties.

The after acquired property is manifested in the context above, Eduardo must have penned a security agreement nn other to secure the $50,000 loan from the National Bank, and therefore his real and personal properties such as his 10 year old van, including properties purchased after penning the security agreement such as the Just purchased greenhouse automatically becomes a collateral for his debt.

5 0
2 years ago
Read 2 more answers
Describe at least four ways you can take money out of a checking account. ​
Klio2033 [76]

Answer:

yes

Explanation:

You, as the account owner, can also withdraw or remove funds from the account. You can withdraw by automatic electronic transfer, check, ATM card or debit card. There are many ways these days to withdraw money from your accounts.

7 0
3 years ago
When contemplating stopping distances, the three critical factors to be considered are
Naddika [18.5K]
C perception, reaction, braking
3 0
2 years ago
Other questions:
  • ​a(n) __________ is used to determine the benefits that target customers value and how customers rate the relative value of vari
    8·1 answer
  • The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $31,000 per year fo
    10·1 answer
  • You are in talks to settle a potential lawsuit. The defendant has offered to make annual payments of $28,000, $32,000, $66,000,
    5·1 answer
  • Seadrill Engineering sold software to oil-drilling firms. In addition to providing the software, the company also provides consu
    7·1 answer
  • Wassamatta University is considering resigning its minimum qualifications for professors from possessing a master's degree to po
    9·1 answer
  • John is interested in joining with a large corporation in a cooperative venture to share risks and pool resources for his small
    12·1 answer
  • The main determinant of elasticity of supply is the: A. number of close substitutes for the product available to consumers. B. a
    14·1 answer
  • Que son los creditos
    5·1 answer
  • The cost slope of an activity $ 250/day. The normal duration of this activity is 15 days, the crash cost is $1,500 and the maxim
    6·1 answer
  • Question content area preferred stockholders must receive their current-year dividends before the common stockholders can receiv
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!