1. Advertising budgeting methods

• Last years sales were $11,600,000 and are projected to increase by 4% for next year. Last years expenses were 41% of last years sales and are projected to decrease by 2% for next year. Last year the business earned a profit of $4,117,600. Profit is expected to increase by 3% over last years figures. Plug in last years figures to see how much the company spent on advertising last year.

Sales (for the year)

Expenses

Profit Amount spent on advertising

• Based on the last years figures and the projected changes in sales, expenses and profit, calculated forecasted sales, expenses and profits for the upcoming year. Calculate the amount left to spend on advertising.

Forecasted sales Forecasted expenses

Forecasted profit expectation

Amount left to spend on advertising