optimal advertising-to-sales ratio

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  d)Does the advertising by its three largest rivals affect sales of Bright Side detergent in a statistical significant way? ANSWER: P-Value and T-Ratio show that the competitor's advertising has a negative effect.

• Managerial Economics: Appalachian Coal Mining, Vanguard Corp

  a = 175086, without any advertising the company's sales is expected to be $175,086 b = 0.855, is the slope parameter of Vanguard's own advertising. b > 0 means it has a positive effect on the sales.

• Finding the Optimal Number of Advertising Hours

  The advertising-sales relation could be thought of as a production function with advertising as an input and sales as the output. The problem is to find the level of advertising that maximizes sales.

• Determining optimal level of advertising

  Is $200,000 the optimal amount for the firm to spend on advertising? At optimum point the marginal revenue of advertising should be equal to the marginal cost of advertising.

• Monopoly & Monopolistic Competition: Calculating Marginal Revenue From Advertising

  Is $200,000 the optimal amount for the firm to spend on advertising? At optimum point the marginal revenue of advertising should be equal to the marginal cost of advertising.

• Monopoly & Monopolistic Competition

  According to studies he carried out, the relationship between the amount spent by the firm on advertising and its sales is as follows: Advertising expenditure Sales $100,000 $1.0 million 200,000 1.3 million 300,000 1.5 million 400,000

• Determine Optimal Scam's need for external funds next year. Construct a pro forma balance sheet for Optimal Scam. Sustainable growth rate.

  The current financial policy of the Optimal Scam Company includes Dividend-payout ratio (d) 70% Debt-to-equity ratio (L) 77.78% Net profit margin (P) 6.25% Assets-sales ratio (T) 1 a.

• Income Statement and Balance Sheets

  includes Dividend-payout ratio (d) = 70% Debt-to-equity ratio (L) = 77.78% Net profit margin (P) = 6.25% Assets-sales ratio (T) =1 Determine Optimal Scam's need for external funds next year.

• profit maximization

  To find the optimal sales, we calculate the max. of the function by finding its gradient.