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[SOLVED]Chester's Elite product Cedar has an awareness of 72%. Chester's Cedar product manager for the Elite segment is determined

Chester's Elite product Cedar has an awareness of 72%. Chester's Cedar product manager for the Elite segment is determined to have more awareness for Cedar than Andrews' Elite product Acre. 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 Cedar's existing awareness is lost every year. Assuming that Acre'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' Acre product?

Select : 1

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  •  2M
  •  Nothing
  •  1M
  •  3M

 



honeyd


29-03-21 | 12:20:10
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(5.0 of 1 reviews)

=2/3*77%=51.3
Add 1000=51.3+22=73%
Additional amount to spend to get 77% plus awareness
=(77%-73%)*1000/23%=174
Total to spend to get more than acre awareness=1000+173=1173
2M is the correct answer since 1M will not get more than 77%

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