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    R&R2 Week

    Uploaded by

    Mohammed Sobuh
    The document contains data on optimal total net sales increases from varying advertising budgets from $195 million to $270 million. It shows that higher advertising budgets result in higher net sales increases, with an additional $10 million in budget leading to around $1 million more in net sales. A second table displays the allocation of advertising spending across different spending percentages and product markets for varying total budget levels.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    R&R2 Week

    Uploaded by

    Mohammed Sobuh
    19 views7 pages
    The document contains data on optimal total net sales increases from varying advertising budgets from $195 million to $270 million. It shows that higher advertising budgets result in higher net sales increases, with an additional $10 million in budget leading to around $1 million more in net sales. A second table displays the allocation of advertising spending across different spending percentages and product markets for varying total budget levels.

    Original Title

    R&R2 week (1).xlsx

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    The document contains data on optimal total net sales increases from varying advertising budgets from $195 million to $270 million. It shows that higher advertising budgets result in higher net sales increases, with an additional $10 million in budget leading to around $1 million more in net sales. A second table displays the allocation of advertising spending across different spending percentages and product markets for varying total budget levels.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    19 views7 pages

    R&R2 Week

    Uploaded by

    Mohammed Sobuh
    The document contains data on optimal total net sales increases from varying advertising budgets from $195 million to $270 million. It shows that higher advertising budgets result in higher net sales increases, with an additional $10 million in budget leading to around $1 million more in net sales. A second table displays the allocation of advertising spending across different spending percentages and product markets for varying total budget levels.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 7

    Optimal Total Net Sales Increase ($

    Budget ($ millions) millions)


    195 7.38

    Results for Alternative Budget Values

    Optimal Total Net Sales Increase ($


    Budget ($ millions) millions)
    195.000 7.383
    200.000 7.594
    205.000 7.805
    210.000 8.016
    215.000 8.227
    220.000 8.438
    225.000 8.648
    230.000 8.859
    235.000 9.064
    240.000 9.257
    245.000 9.450
    250.000 9.643
    255.000 9.836
    260.000 10.029
    265.000 10.221
    270.000 10.414
    Spending
    10.500 Spending % Spending
    Spending % S-I % S-C E-I % E-C

    Optimal Total Net Sales Increase ($ millions)


    0.35 0.09 0.00 0.56
    10.000

    9.500

    Extra
    9.000 Net Sales
    Increase/
    Spending Spending % Spending Extra
    Spending % S-I %8.500
    S-C E-I % E-C Budget
    0.347 0.092 0.000 0.561
    0.359 8.000 0.078 0.000 0.562 ###
    0.371 0.065 0.000 0.564 ###
    0.382 0.052 0.000 0.565 ###
    7.500
    0.393 0.040 0.000 0.567 ###
    0.403 0.028 0.000 0.568 ###
    0.413 7.000 0.017 0.000 0.569 ###
    0.423 0.007 Advertising
    195 200 205 210 215 220 225Budget,
    0.000 230 235 $240
    0.571 millions
    245 250 255
    ### 260 265 270

    0.429 0.000 0.000 0.571 ###


    0.429 0.000 0.000 0.571 ###
    0.429 0.000 0.000 0.571 ###
    0.429 0.000 0.000 0.571 ###
    0.429 0.000 0.000 0.571 ###
    0.429 0.000 0.000 0.571 ###
    0.429 0.000 0.000 0.571 ###
    0.429 0.000 0.000 0.571 ### 0.700
    0.600
    0.500
    0.400
    0.300
    0.200
    0.100
    0.000
    195 2

    Spending
    260 265 270

    Allocation of Advertising Budget


    0.700
    0.600
    0.500
    0.400
    0.300
    0.200
    0.100
    0.000
    195 205 215 225 235 245 255 265 275

    Advertising Budget ($ millions)

    Spending % S-I Spending % S-C Spending % E-I Spending % E-C


    A B C D E F G H I
    1 Hudson Readers.xlsx
    2 Modeling Risk and Realities =SUMPRODUCT(B11:C12,B6
    :C7)
    3
    4 Net Sales Increase (in $ per $ spent on advertising) Total Net Sales Increase
    5 Product/Market India China (in $ millions)
    6 Standard 0.05 0.04 7.38
    7 Enhanced 0.02 0.03
    8
    9 Spending Amounts (in $ millions)
    10 Product/Market India China
    11 Standard 67.66 17.97
    12 Enhanced 0.00 109.38
    13
    =SUM(B11:C12)
    14 Constraints
    =SUMPRODUCT(B11:B12,B
    15 Total Spending Budget 195.00 <= 195.00 6:B7)
    =SUMPRODUCT(C11:C12,C6:C
    16 Sales Increase in India 3.38 => 3.00 7)
    17 Sales Increase in China 4.00 => 4.00 =SUMPRODUCT(B12:C12,B7:C7)
    18 Sales Increase for Enhanced Versi 3.28 => 3.28
    =0.8*SUMPRO
    19
    DUCT(B11:C11,
    20 B6:C6)
    21
    INDIACHINA
    STANDARED 66 19 195 <= 195
    ENHANSED 0 110 3.3 >= 3.248

    INDIACHINA
    STANDARED 0.05 0.04
    ENHANSED 0.02 0.03
    3.3 4.06
    >= >=
    3 4
    OBJfunction 7.36
    Investment expected annual retuen Quality
    US government G ### 0.015 5
    US municiped M 20 0.03 3
    US corporate C 20 0.045 2
    Consumer loans L ### 0.08 1

    125.000001370068 3
    1 (=)
    125

    All 4
    >=
    2 20

    <=

    62.5
    OBJ functiom ###

    31.8749997327726 >= ###

    312.500000301159 >= 312.5

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