2. If PepsiCo had decided to base its 2018 advertising budget on the industry average advertising-to-sales ratio for beverages, which was 4.1 percent, how much would PepsiCo have budgeted for advertising based on 2017 sales? How much of a budget increase does that represent? Compare that to the actual

$500-million increase in advertising expenditures in 2018. Was PepsiCo’s action effective? (AACSB:

Analytic Reasoning; Reflective Thinking)