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makkiz
1 month ago
5

Brand managers know that increasing promotional budgets eventually result in diminishing returns. The first one million dollars

typically results in a 26% increase in awareness, while the second million results in adding another 18% and the third million in a 5% increase. Andrews’s product Adam currently has an awareness level of 77% . While an important product for Andrews, Adam’s promotion budget will be reduced to one million dollars for the upcoming year. Assuming that Adam loses one-third of its awareness each year, what will Adam’s awareness level be next year?
Business
1 answer:
arsen [2.9K]1 month ago
8 0
Awareness is currently at 77%, or.77. Over time, awareness diminishes by 33% annually, so in the absence of extra promotional spending, next year’s awareness would be calculated as.77 *.66 (which is two-thirds of 77%). An expenditure of one million dollars would boost awareness by 26%, resulting in an awareness level of 0.77 * 1.26. To determine next year's awareness: 77% times (1.26 -.33) equals.77 * 0.93, giving us.716, or 71.6%.


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Question not complete

Direct Labour Cost is missing

Direct Labor Cost ----- $50,000.00 $270,000.00

Answer:

a.

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The Cutting Department's rate is based on machine-hours

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Overhead Rate = $5.5 per machine hours ------ This was calculated

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Given

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Overhead Rate = 136% of labor cost ------ This was deduced

Overhead Applied (Cutting Department) = 80 * 5.5

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