SG management decided to spend aggressively in offline and online advertising during 2010 in order to bump annual sales, market share, and rate of returns. By and large, SG decided to implement radio, print, outdoor, and online advertising. The company needs to evaluate the effectiveness of advertising activities implemented in 2010 in order to continue or stop spending in those activities during 2011? Sales reached $4.5 million in 2010? The rate of pre-tax earnings over sales was 5.1 percent in 2010. Management believes that sales would have reached $3.5 million and pre-tax rate earnings would have been $0.15 million in 2010 without the implementation of the aggressive marketing program?

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