help@plusacademics.org

[SOLVED]Baldwin's Elite product Boat has an awareness of 72%.

Baldwin's Elite product Boat has an awareness of 72%. Baldwin's Boat product manager for the Elite segment is determined to have more awareness for Boat 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 Boat'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 Baldwin's Elite product manager should spend in promotion to earn more awareness than Andrews' Axe product?

Select : 1

Submit Answer

  •  2M
  •  Nothing
  •  1M
  •  3M



honeyd


29-03-21 | 15:15:19

1M add 22%. if boat losses 1/3 of its awareness, it will end up with
=2/3*72%+22%
=70 which is less than 77%
if we add another 1M we will end up with
=2/3*72%+22%+23%
=93%

the best answer
2M

Login to answer this question!