subject
Business, 02.09.2020 01:01 bhadd4385

As a marketing manager for one of the world’s largest automakers, you are responsible for the advertising campaign for a new energy-efficient sports utility vehicle. Your support team has prepared the following table, which summarizes the (year-end) profitability, estimated number of vehicles sold, and average estimated selling price for alternative levels of advertising. The accounting department projects that the best alternative use for the funds used in the advertising campaign is an investment returning 9 percent. In light of the staggering cost of advertising (which accounts for the lower projected profits in years 1 and 2 for the high and moderate advertising intensities), the team leader recommends a low advertising intensity in order to maximize the value of the firm. Profits (in millions) Units Sold (in thousands) Average Selling Price Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Year 1 Year 2 Year 3Advertising IntensityHigh $20 $80 $300 10 60 120 $35,000 $36,500 $38,000Moderate $40 $80 $135 5 12.5 25 $35,800 $36,100 $36,300Low $75 $110 $118 4 6 7.2 $35,900 $36,250 $36,000Which advertising intensity would you suggest?

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 03:50
Suppose that a worker in agland can produce either 10 units of organic grain or 2 units of incense per year, and a worker in zenland can produce either 5 units of organic grain or 15 units of incense per year. there are 20 workers in agland and 10 workers in zenland. currently the two countries do not trade. agland produces and consumes 100 units of grain and 20 units of incense per year. zenland produces and consumes 50 units of grain and no incense per year. if each country made the decision to specialize in producing the good in which it has a comparative advantage, then the combined yearly output of the two countries would increase by a. 30 units of grain and 100 units of incense. b. 30 units of grain and 150 units of incense. c. 50 units of grain and 90 units of incense. d. 50 units of grain and 130 units of ince
Answers: 1
question
Business, 23.06.2019 01:50
Consider a firm with a contract to sell an asset for $149,000 four years from now. the asset costs $85,000 to produce today. a. given a relevant discount rate of 14 percent per year, calculate the profit the firm will make on this asset. (a loss should be indicated by a minus sign. do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. at what rate does the firm just break even?
Answers: 3
question
Business, 23.06.2019 02:00
Which of the following describes a situation of scarcity? a. someone offers free advice about getting into college. b. someone distributes free bottles of water at the beach. c. a child charges friends for a ride on his new bike. d. a person lets the kids in the neighborhood use his pool.
Answers: 1
question
Business, 23.06.2019 06:10
Which of the following functions finds the highest value of selected inputs? a. high b. hvalue c. max
Answers: 3
You know the right answer?
As a marketing manager for one of the world’s largest automakers, you are responsible for the advert...
Questions
question
Mathematics, 13.07.2019 00:30
Questions on the website: 13722367