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If a company spends $6 million to advertise its camera lines in North America, assembles and ships 300,000 entry-level cameras and 150,000 multi-featured cameras to

If a company spends $6 million to advertise its camera lines in North America, assembles and ships 300,000 entry-level cameras and 150,000 multi-featured cameras to its North American dealers, derives revenues of $45 million from its sales of entry-level cameras and $55 million from the sales of its multi-featured cameras, then (please provide calculations)

  • 45% of the $6 million in advertising expenditures will be allocated to the costs of advertising for entry-level cameras and 55% will be allocated to the costs of multi-featured cameras.
  • advertising costs for entry-level and multi-featured cameras will be 4% of camera revenues in North America.
  • the per camera advertising costs for entry-level cameras will be twice as large as the per camera advertising costs for multi-featured cameras.
  • the per camera advertising costs for entry-level cameras will be $13.33 and the per camera advertising costs for multi-featured cameras will also be $13.33.
  • 50% of the $6 million in advertising expenditures will be allocated to the costs of advertising for entry-level cameras and 50% will be allocated to the costs of multi-featured cameras.

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