Option C, Production capacity is maxed out (200% plant utilization) and the company is stocking out of the product
Explanation:
A budget is a savings plan determined for a certain period in order to determine how money is spent. In simple terms, budgeting is a method to balance an enterprise's expenses with its profit.
The advertising budget requires a fund to be set aside to advertise the organization's goods and services. This helps to estimate the cost of maintaining the reputation of the company.
It raises the advertising budget in order to raise awareness of the commodity in the short run by increasing production capacity and availability of the product by the company.