Luna Pizza is a regional producer of frozen pizza. Its only major competitor is Brutus Bros. The following is a brief excerpt from Luna's situation analysis for the next fiscal year. Estimate the next year's advertising budgets for Luna under each of the following circumstances:

a. Luna follows an historical method by spending 40 cents per unit sold in advertising, with a 5 percent increase for inflation.

b. Luna follows a fixed percentage of projected sales method, using 7 percent.

c. Luna follows a share-of-voice method. Brutus, the primary competitive pizza brand, is expected to use 6 percent of sales for its advertising budget in the nextyear.

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Actual Last Year Next Year 120,000 420,000 580,000 630,000 Estimated Units solod $ sales Brutus $sales 185,000 830,000