Question: Company ( A ) , the number - two auto insurer with ( $ 1 4 ) billion in revenue

Company \( A \), the number-two auto insurer with \(\$ 14\) billion in revenue last year, spent \(\$ 1.3\) billion on advertising that year and plans to continue spending the same percentage of sales on advertising next year. The average advertising-to-sales ratio for the insurance industry is 0.3 percent of sales. If Company A projects \(\$ 18\) billion in sales next year, using the percentage-of-sales method of advertising budgeting, how much will the company budget for advertising if basing it on projected sales? Part 1 of 2 Part 2 of 2 Using the advertising-to-sales ratio for the last year, Company A will budget \$ advertising next year. (Round to one decimal place.)
Company \ ( A \ ) , the number - two auto insurer

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