A company that manufactures baseball gloves is contemplating whether to increase its advertising budget by $3 million
Question:
A company that manufactures baseball gloves is contemplating whether to increase its advertising budget by $3 million for next year. If the expanded advertising campaign is successful, the company expects sales to increase by $4.8 million next year. If the advertising campaign fails, the company expects sales to increase by only $900,000 next year. If the advertising budget is not increased, the company expects sales to increase by $450,000. Identify the possible outcomes in this decision-making problem.
a. | Two choices: (1) increase the budget and (2) do not increase the budget. |
b. | Four consequences resulting from the Increase/Do Not Increase and Successful/Not Successful combinations. |
c. | Two choices: (1) campaign is successful and (2) campaign is not successful. |
d. | The increase in sales dollars next year. |
