If a company increases advertising from 10m to 15m per year, Operation Management

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If a company increases advertising from 10m to 15m per year

a. If a company increases advertising from $10M to $15M per year, by what percent would you forecast sales to increase? Please clearly show your calculation and logic. Assume that the product is a sports drink like Powerade.

AED= .025 prior

Increase=15-10/10=50

.025*50=12.5

b. If a company has current sales of $100M, what is the ROI for the prior question?

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Operation Management: If a company increases advertising from 10m to 15m per year

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