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Inputs: unit revenue 4 0 unit cost 2 5 overheads % of revenues 0 . 1 5 Demand parameters ( constant ) 3 5 Demand

Inputs:
unit revenue 40
unit cost 25
overheads % of revenues 0.15
Demand parameters (constant)35
Demand parameters (adv.intercept)3000
Quarter: 1234
Seasonal adjustement factor 0.91.10.81.2
Sales force expenses 8000800090009000
Decision:
Quarter 1234 Total
Adv.expenditures 1000010000100001000040000
Outputs:
Quarter 1234 Total
Units demanded 359243903192478915963
Total revenue 143680175600127680191560638520
Cost of goods sold 8980010975079800119725399075
Gross profit 53880658504788071835239445
Sales force expenses 800080009000900034000
advertising expense 1000010000100001000040000
overhead expense 2155226340191522873495778
Total operating expense 39552443403815247734169778
Net income 143282151097282410169667
profit margin 0.0997216040.1224943050.0761904760.1258143660.109106997Assuming that quarterly advertising expenditures remain the same in each quarter throughout
the year, use a one-way data table to determine the annual advertising expenditure that maximizes the companys annual net income. Consider advertising expenditure values from $0 to
$120,000 in increments of $5,000. Plot the results of your analysis on a line graph.
c. Assuming that quarterly advertising expenditures remain the same in each quarter throughout
the year, use a one-way data table to determine the annual advertising expenditure that maximizes the companys profit margin. Consider advertising expenditure values from $0 to $120,000
in increments of $5,000. Plot the results of your analysis on a line graph.

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