Question

A business made $1.5 million in sales this year, and estimates a 7% increase in sales for the coming year.

If the company allocates 10% of expected sales for promotional activities, how much would be allocated (set aside) for next year's promotion (advertising)?

Answer 1

$160,500

Explanation:

First, find the coming years sales

7% of 1,500,000 is 105000

105,000+1,500,00=1,605,000

1,605,000 is the next year's sales and we do that *0.1 to find the advertising.

1,605,000*0.1=160,500

So 160,500 will be set aside for advertising

Hope this helped!