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Adam is the marketing manager for the dirt bikes division of Honda Adam estimated that his divisional marketing budget for the year will be $2,000,000.

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Adam is the marketing manager for the dirt bikes division of Honda Adam estimated that his divisional marketing budget for the year will be $2,000,000. He presents his budget to John, the divisional CFO, John reviews and tells Adam he needs to use zero-based budgeting. Considering John's direction, what is the most appropriate analysis for Adam? Consider each answer independently. Adam knows that for every $10,000 dirt bike sold, Honda makes around $2.000. Adam performs an analysis and concludes that spending $2,000,000 on commercials and event advertisements should sell a little over 2,000 dirt bikes O Adam benchmarks his budget against his biggest competitor Kawasaki. Kawasaki ses more dirt bikes than Honda and spends around $1,800,000 a year on the division's marketing efforts. To outsell Kawasaki, Adam believes Honda will need a greater marketing investment. O Adam reviewed dirt bike sales for the last 5 years and noted that marketing was around 10% of sales. Management expects to sell $20,000,000 worth of dirt bikes this year. The $2,000,000 maintains a consistent marketing expense to sales ratio. O Adam breaks down each expense, between commercials, trade shows, and online-advertising. The total of all of these ends up being $2,000,000 which should generate $2,000,000 in revenue

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