Question
Chester's Elite product Clack has an awareness of 72%. Chester's Clack product manager for the Elite segment is determined to have more awareness for
Chester's Elite product Clack has an awareness of 72%. Chester's Clack product manager for the Elite segment is determined to have more awareness for Clack than Andrews' Elite product Apple. She knows that the first $1M in promotion generates 22% new awareness, the second million adds 23% more and the third million adds another 5%. She also knows one-third of Clack's existing awareness is lost every year. Assuming that Apple's awareness stays the same next year (77%), out of the promotion budgets below, what is the minimum Chester's Elite product manager should spend in promotion to earn more awareness than Andrews' Apple product?
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M. Datar, George Foster
12th edition
131495380, 978-0131495388
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