2. If a company spends $5 million to advertise its camera lines in North America, assembles and ships 300,000 entry-level cameras and 200,000 multi-featured cameras to its North American dealers, derives revenues of $100 million from its sales of entry-level cameras and $150 million from the sales of its multi-featured cameras in North America, then a. 50% of the $5 million in advertising expenditures in North America will be allocated to the costs of advertising for entry-level cameras and 50% will be allocated to the costs of multi-featured cameras. b. 60% of the $5 million in advertising expenditures in North America will be allocated to the costs of advertising for entry-level cameras and 40% will be allocated to the costs of multi-featured cameras. c. the per camera advertising costs for both entry-level and multi-featured cameras in North America will be $7.50. d. 40% of the $5 million in advertising expenditures in North America will be allocated to the costs of advertising for entry-level cameras and 60% will be allocated to the costs of multi-featured cameras. e. None of the above.
2. If a company spends $5 million to advertise its camera lines in North America, assembles and ships 300,000 entry-level cameras and 200,000 multi-featured cameras to its North American dealers, derives revenues of $100 million from its sales of entry-level cameras and $150 million from the sales of its multi-featured cameras in North America, then a. 50% of the $5 million in advertising expenditures in North America will be allocated to the costs of advertising for entry-level cameras and 50% will be allocated to the costs of multi-featured cameras. b. 60% of the $5 million in advertising expenditures in North America will be allocated to the costs of advertising for entry-level cameras and 40% will be allocated to the costs of multi-featured cameras. c. the per camera advertising costs for both entry-level and multi-featured cameras in North America will be $7.50. d. 40% of the $5 million in advertising expenditures in North America will be allocated to the costs of advertising for entry-level cameras and 60% will be allocated to the costs of multi-featured cameras. e. None of the above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2. If a company spends $5 million to advertise its camera lines in North America, assembles and ships 300,000
entry-level cameras and 200,000 multi-featured cameras to its North American dealers, derives revenues of $100
million from its sales of entry-level cameras and $150 million from the sales of its multi-featured cameras in North
America, then
a. 50% of the $5 million in advertising expenditures in North America will be allocated to the costs of advertising
for entry-level cameras and 50% will be allocated to the costs of multi-featured cameras.
b. 60% of the $5 million in advertising expenditures in North America will be allocated to the costs of advertising
for entry-level cameras and 40% will be allocated to the costs of multi-featured cameras.
c. the per camera advertising costs for both entry-level and multi-featured cameras in North America will be
$7.50.
d. 40% of the $5 million in advertising expenditures in North America will be allocated to the costs of advertising
for entry-level cameras and 60% will be allocated to the costs of multi-featured cameras.
e. None of the above.
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