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1. Linda owns a flower and gift shop in Stroudsburg that had $250,000 in sales and $50,000 in profits last year. She is considering running

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1. Linda owns a flower and gift shop in Stroudsburg that had $250,000 in sales and $50,000 in profits last year. She is considering running ads increase her sales and profits. She needs the store to generate at least $35,000 in profits for her to live on. Her husband, Dan, suggests she spend 10% of her sales on advertising as he does with his contracting business. A marketing consultant tells her the way to increase sales is to boost awareness, and that building awareness from the 12% of the market she has now to 25% would increase sales by $150,000 and profits by $35,000 at a cost of $20,000. Linda learns that a flower store in East Stroudsburg with comparable sales is spending $5,000 on advertising. Which method of budgeting should Linda use and why? How much should she budget for advertising? 1. Linda owns a flower and gift shop in Stroudsburg that had $250,000 in sales and $50,000 in profits last year. She is considering running ads increase her sales and profits. She needs the store to generate at least $35,000 in profits for her to live on. Her husband, Dan, suggests she spend 10% of her sales on advertising as he does with his contracting business. A marketing consultant tells her the way to increase sales is to boost awareness, and that building awareness from the 12% of the market she has now to 25% would increase sales by $150,000 and profits by $35,000 at a cost of $20,000. Linda learns that a flower store in East Stroudsburg with comparable sales is spending $5,000 on advertising. Which method of budgeting should Linda use and why? How much should she budget for advertising

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