Question: Company ( A ) , the number - two auto insurer with ( $ 1 4 ) billion in revenue
Company A the numbertwo auto insurer with $ billion in revenue last year, spent $ billion on advertising that year and plans to continue spending the same percentage of sales on advertising next year. The average advertisingtosales ratio for the insurance industry is percent of sales. If Company A projects $ billion in sales next year, using the percentageofsales method of advertising budgeting, how much will the company budget for advertising if basing it on projected sales? Part of Part of Using the advertisingtosales ratio for the last year, Company A will budget $ advertising next year. Round to one decimal place.
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