A company has two departments, Y and Z that incur advertising expenses of $10,600. Advertising expenses are allocated based on sales. Department Y has sales of $504,000 and Department Z has sales of $756,000. The advertising expense allocated to Departments Y and Z, respectively, are:

A company incurs advertising costs of $10,000. The company's three selling departments have the following sales: Department 1—$10,000; Department 2—$30,000; Department 3—$40,000. Advertising is allocated based on percent of sales. The amount of advertising allocated to Department 3 will be $.

In order to analyze sales as a function of advertising expenses, the sales manager developed a simple regression model. The model included the following equation, which was based on 32 monthly observations of sales and advertising expenses with a related coefficient of determination of .90.Sales = $10,000 + (2.5 × Advertising expenses)If the advertising expenses in 1 month amounted to $1,000, the related point estimate of sales would be

A company has sales of $106,000; cost of goods sold of $68,370; and total direct expenses of $7,320. The department’ contribution to overhead is:

Lillard’s Sports Store has three operating departments, and it conducts advertising that benefits all departments. Advertising costs are $200,000. Sales for its operating departments are in the table below. How much advertising cost is allocated to Department 1 if the allocation is based on departmental sales? Department Sales1 $ 440,0002 800,0003 360,000Multiple Choice$55,000.$45,000.$100,000.$90,000.$110,000.

A media buying agency has recommended the following 3 options to a marketing manager for his advertising campaign with a budget of  $ 1 million. The 3 options utilize different amounts of the budget. The sales of this product are $24 million in a market of $200 million and the total advertising expenditure in the category is $8.33 million.  The product is not a new product but a brand leader in the market for some years. The 3 options are:Option 1                                  Option2                       Option 3GRPs   600                                800                               900Reach    70%                             60%                             65%CPM    $20                                 $20                             $20SOV       8%                                  12%                            16%Which option should the marketing manager choose? Explain your choice.