If the firm's advertising budget is $32,000 (instead of $40,000) and the firm allocates it optimally over the four quarters, the firm's profit is:

a.67,791.59

b.66,149.51

c.68,303.21

d.69,000.13

If the firm's advertising budget is $32,000 (instead of $40,000) the firm spends it in equal increments over the four quarters, the firm's profit is: a.67,897.45

b.66,149.91

c.66,500.34

d.68,765.54

In the Advertising Budget Decision Case, the unit sales formula is: Unit sales = 35*seasonal_factor*SQRT(3000+advertising). A $1 increase in advertising causes the unit sales to increase more when seasonal_factor is 0.9 instead of 1.1.

a.True b.False