If PepsiCo had decided to base its 2018 advertising budget on the industry average advertising-to-sales ratio for beverages, which is 4.1 percent, how much would PepsiCo have budgeted for advertising based on last year’s sales? How much of a budget increase is that?

Compare that to the actual 2018 $500 million increase in advertising expenditures. Was Pepsi’s action effective? (AACSB: Analytic Reasoning; Reflective Thinking)