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Inputs:

unit revenue $40$

unit cost $25$

overheads $\%$ of revenues $0\mathrm{.}15$

Demand parameters $($constant$)35$

Demand parameters $($adv$.$intercept$)3000$

Quarter: $1234$

Seasonal adjustement factor $0\mathrm{.}91\mathrm{.}10\mathrm{.}81\mathrm{.}2$

Sales force expenses $8000800090009000$

Decision:

Quarter $1234$ Total

Adv.expenditures $1000010000100001000040000$

Outputs:

Quarter $1234$ Total

Units demanded $359243903192478915963$

Total revenue $143680175600127680191560638520$

Cost of goods sold $8980010975079800119725399075$

Gross profit $53880658504788071835239445$

Sales force expenses $800080009000900034000$

advertising expense $1000010000100001000040000$

overhead expense $2155226340191522873495778$

Total operating expense $39552443403815247734169778$

Net income $143282151097282410169667$

profit margin $0\mathrm{.}0997216040\mathrm{.}1224943050\mathrm{.}0761904760\mathrm{.}1258143660\mathrm{.}109106997$Assuming that quarterly advertising expenditures remain the same in each quarter throughout

the year, use a one$-$way data table to determine the annual advertising expenditure that maximizes the company$$s annual net income. Consider advertising expenditure values from $$0$ to

$$120,000$ in increments of $$5,000.$ Plot the results of your analysis on a line graph.

c$.$ Assuming that quarterly advertising expenditures remain the same in each quarter throughout

the year, use a one$-$way data table to determine the annual advertising expenditure that maximizes the company$$s profit margin. Consider advertising expenditure values from $$0$ to $$120,000$

in increments of $$5,000.$ Plot the results of your analysis on a line graph.

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