Digby's Elite product Dart has an awareness of 72%. Digby's Dart product manager for the Elite segment is determined to have more awareness for Dart than Andrews' Elite product Abby. 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 Dart's existing awareness is lost every year. Assuming that Abby's awareness stays the same next year (77%), what is the minimum Digby's Elite product manager should spend in promotion to earn more awareness than Andrews' Abby product?

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Production vs Capacity Andrews Baldwin Chester Bead Bill Digby Buddy Bat O Apple Core 1,829 51 12/10/2014 Agape Nano 921 265 11/9/2015 11/14/2015 4/13/2013 Abby Elite 772 217 Alan Thrift 1,369 759 500 1,000 1,500 2,000 2,500 Capacity Unit Age Primary Units Inven Pfmn Size Name Segment Sold tory Revision Date Dec.31 MTBF Coord Coord Price Thrift 1,339 238 12/11/2015 Thrift 1,672 287 12/19/2015 Core 1,288 150 Core 1,415 85 12/3/2015 11/19/2015 Dune Nano Dart Elite Deft Nano Dim Elite Cure Thrift 1,728 22 Camp Core Cent Nano Clack Elite 1,883 14 699 163 604 135 1,127 89 435 147 6/27/2016 11/30/2015 12/22/2015 11/5/2015 11/12/2015 12/13/2015 960 214 12/22/2015 864 192 12/5/2015 Production Information 2.2 22000 7.9 1.1 24000 10.6 1.1 26000 12.7 5.1 20000 5.2 2.8 17000 2.6 17000 1.2 18000 1.2 20000 3.5 14000 1.2 16000 1.1 18000 1.1 20000 2.2 23000 1.9 25000 1.0 23000 1.0 25000 6.3 6.5 8.9 9.6 3,000 3,500 4,000 4,500 5,000 5,500 Production 5.5 8.1 10.0 12.0 8.9 12.1 10.5 12.5 12.2 $32.00 7.6 $40.00 9.6 $42.00 14.9 $26.00 13.8 $19.00 13.6 $19.00 10.8 $27.00 11.3 $28.00 14.6 $20.00 12.0 $22.00 8.3 $31.00 10.1 $35.00 9.4 $30.00 10.2 $38.00 7.6 $37.00 9.6 $39.00 Material Labor Contr. Cost Cost Marg. $11.60 $8.96 35% $16.13 $10.29 33% $16.81 $9.80 $8.13 $7.90 2nd Auto Shift & mation Capacity Over- Next Next Plant time Round Round Utiliz. 50% 5.0 42% 4.0 36% 22% 4.0 33% 90% 6.0 $8.40 $4.03 41% 33% 8. $8.61 $4.22 37% 57% 8.0 $11.68 $7.38 30% 93% 6.0 $12.39 $7.38 30% 93% 6.0 9.0 7.0 $6.65 $2.82 51% 100% $10.01 $5.64 31% 100% $13.64 $6.24 36% 25% 6.0 $14.36 $7.09 38% 8% 5.0 $13.98 $9.50 25% 93% $15.87 $7.73 41% 0% $15.79 $8.50 34% 27% 5.0 $16.39 $7.95 37% 6% 5.0 5.0 5.0 1,200 149% 728 141% 714 121% 1,130 188% 1,050 132% 1,250 155% 900 191% 950 191% 1,000 198 % 1,150 198% 750 124% 800 107% 570 191% 700 64% 850 125% 950 105% ROS Asset Turnover ROA Leverage (Assets/Equity) ROE Emergency Loan Sales EBIT Profits Cumulative Profit SG&A / Sales Contrib. Margin % 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Andrews Percent of Sales Andrews 12.3% 1.32 16.3% 1.7 28.3% $0 $163,405,682 $36,465,763 $20,139,267 $0 7.9% 34.1% Baldwin Chester Digby Baldwin 5.7% 0.91 5.2% 2.7 13.7% $0 $131,627,447 $21,737,197 $7,499,948 $0 9.7% 33.8% Profit Other OSGA Depr Var Costs Chester 8.6% 0.94 8.1% 2.4 19.2% $0 $118,809,302 $23,745,048 $10,189,632 $0 11.2% 38.8% Digby 9.2% 1.27 11.8% 1.9 22.4% $0 $119,585,004 $21,603,263 $11,056,951 $ Market Share $0 10.3% 33.3% Andrews 30.63 % Baldwin 24.68 % Chester 22.27% Digby 22.42% Production vs Capacity Andrews Baldwin Chester Bead Bill Digby Buddy Bat O Apple Core 1,829 51 12/10/2014 Agape Nano 921 265 11/9/2015 11/14/2015 4/13/2013 Abby Elite 772 217 Alan Thrift 1,369 759 500 1,000 1,500 2,000 2,500 Capacity Unit Age Primary Units Inven Pfmn Size Name Segment Sold tory Revision Date Dec.31 MTBF Coord Coord Price Thrift 1,339 238 12/11/2015 Thrift 1,672 287 12/19/2015 Core 1,288 150 Core 1,415 85 12/3/2015 11/19/2015 Dune Nano Dart Elite Deft Nano Dim Elite Cure Thrift 1,728 22 Camp Core Cent Nano Clack Elite 1,883 14 699 163 604 135 1,127 89 435 147 6/27/2016 11/30/2015 12/22/2015 11/5/2015 11/12/2015 12/13/2015 960 214 12/22/2015 864 192 12/5/2015 Production Information 2.2 22000 7.9 1.1 24000 10.6 1.1 26000 12.7 5.1 20000 5.2 2.8 17000 2.6 17000 1.2 18000 1.2 20000 3.5 14000 1.2 16000 1.1 18000 1.1 20000 2.2 23000 1.9 25000 1.0 23000 1.0 25000 6.3 6.5 8.9 9.6 3,000 3,500 4,000 4,500 5,000 5,500 Production 5.5 8.1 10.0 12.0 8.9 12.1 10.5 12.5 12.2 $32.00 7.6 $40.00 9.6 $42.00 14.9 $26.00 13.8 $19.00 13.6 $19.00 10.8 $27.00 11.3 $28.00 14.6 $20.00 12.0 $22.00 8.3 $31.00 10.1 $35.00 9.4 $30.00 10.2 $38.00 7.6 $37.00 9.6 $39.00 Material Labor Contr. Cost Cost Marg. $11.60 $8.96 35% $16.13 $10.29 33% $16.81 $9.80 $8.13 $7.90 2nd Auto Shift & mation Capacity Over- Next Next Plant time Round Round Utiliz. 50% 5.0 42% 4.0 36% 22% 4.0 33% 90% 6.0 $8.40 $4.03 41% 33% 8. $8.61 $4.22 37% 57% 8.0 $11.68 $7.38 30% 93% 6.0 $12.39 $7.38 30% 93% 6.0 9.0 7.0 $6.65 $2.82 51% 100% $10.01 $5.64 31% 100% $13.64 $6.24 36% 25% 6.0 $14.36 $7.09 38% 8% 5.0 $13.98 $9.50 25% 93% $15.87 $7.73 41% 0% $15.79 $8.50 34% 27% 5.0 $16.39 $7.95 37% 6% 5.0 5.0 5.0 1,200 149% 728 141% 714 121% 1,130 188% 1,050 132% 1,250 155% 900 191% 950 191% 1,000 198 % 1,150 198% 750 124% 800 107% 570 191% 700 64% 850 125% 950 105% ROS Asset Turnover ROA Leverage (Assets/Equity) ROE Emergency Loan Sales EBIT Profits Cumulative Profit SG&A / Sales Contrib. Margin % 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Andrews Percent of Sales Andrews 12.3% 1.32 16.3% 1.7 28.3% $0 $163,405,682 $36,465,763 $20,139,267 $0 7.9% 34.1% Baldwin Chester Digby Baldwin 5.7% 0.91 5.2% 2.7 13.7% $0 $131,627,447 $21,737,197 $7,499,948 $0 9.7% 33.8% Profit Other OSGA Depr Var Costs Chester 8.6% 0.94 8.1% 2.4 19.2% $0 $118,809,302 $23,745,048 $10,189,632 $0 11.2% 38.8% Digby 9.2% 1.27 11.8% 1.9 22.4% $0 $119,585,004 $21,603,263 $11,056,951 $ Market Share $0 10.3% 33.3% Andrews 30.63 % Baldwin 24.68 % Chester 22.27% Digby 22.42%

Answer rating: 100% (QA)

Let the promotion awareness be 72X Investing 1 million makes it elevated by ... View the full answer