The following are budgeted data: January February March Sales in units 16,900 23,800 19,900 Production in units 19,900 20,900 20
,000 One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 25% of the following month's production needs. Purchases of raw materials for February would be budgeted to be:
In the present case, the advertising of the automobile company seeks to affect the first phase of the decision-making process of consumers, that is, it seeks to create in consumers the need to consume: in the case, it seeks to create the need to buy a new car.
In this way, the company aims to create a situation that motivates the consumption of the product it is selling, through certain marketing strategies, to maximize its sales, and therefore its profits.
