Answer:
A) the affordable method,
Fine Fettle's management assesses its promotional goals and sets the budget according to estimated expenses.
B) the percentage-of-sales method,
Fine Fettle evaluates its projected sales for the turmeric bar and allocates a promotional budget of $150,000.
C) the competitive-parity method,
Fine Fettle reviews its competitors' promotional expenditures, which average between $100,000 and $250,000. Consequently, it sets its promotional budget to $200,000.
D) the objective-and-task method.
Fine Fettle analyzes its income and expenditures, directing its promotional budget based on management's perceived needs.
Explanation:
A) determines promotional costs from available budget constraints.
B) sets promotion costs linked to forecasted sales.
C) gauges competitor expenditure to match or not fall behind.
D) management will decide on a periodic basis the specifics of promotion expenditure.
