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    Financial analysis

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    Chester's Elite product Cell has an awareness of 72%. Chester's Cell product manager for the Elite segment is determined to have more awareness for Cell than Andrews' Elite product Axe. She knows that the first $1M in promotion generates 22% new awareness, the second million adds 23% more and the third million adds another 5%. She also knows one-third of Cell's existing awareness is lost every year. Assuming that Axe's awareness stays the same next year (77%), out of the promotion budgets below, what is the minimum Chester's Elite product manager should spend in promotion to earn more awareness than Andrews' Axe product?

    A. Nothing
    B. 1 Million
    C. 2 Million
    D. 3 Million

    © BrainMass Inc. brainmass.com June 3, 2020, 10:27 pm ad1c9bdddf
    https://brainmass.com/business/finance/financial-analysis-231867

    Solution Preview

    Chester's Elite product Cell has an awareness of 72%. Chester's Cell product manager for the Elite segment is determined to have more awareness for Cell than Andrews' Elite product Axe. She knows that the first $1M in promotion generates 22% new awareness, the second ...

    Solution Summary

    Solution shows calculation of the minimum Chester's Elite product manager should spend in promotion to earn more awareness than Andrews' Axe product.

    $2.19

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