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A large provider of automobile insurance with $ 1 7 billion in revenue last year spent $ 1 . 8 billion on advertising and plans
A large provider of automobile insurance with $ billion in revenue last year spent $ billion on advertising and plans to continue spending the same percentage of sales on advertising next year. The average advertisingtosales ratio for the auto insurance industry is percent of sales. If the company projects $ billion in sales next year, using the percentageofsales method of advertising budgeting, how much will the company budget for advertising if basing it on projected sales? How much would the company budget if it based its advertising spending on the industry advertisingtosales ratio? Is the company consistent with the average industry spending on advertising?
The advertisingtosales ratio for the last year is
Round to four decimal places.
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