8. A business has yearly sales of $1,800,000. The industry average is to spend 6 percent of gross sales on advertising. The company has expenses of $1,200,000 and wants to maintain a profit margin of 30 percent of sales.

1. If this business uses the affordable budget method, what would it establish as its advertising budget? _____

8. 2. Assume the business wants to spend 3.5% of its sales for advertising. If the business uses the percent of sales method, what would it establish as its advertising budget? _____
9. J & J Supplys promotional budget is based on 4% of last years sales. Determine this years budget based on last years sales of $1,000,000. _____