Answer:
$2.5 million
Explanation:
Wrecking Ball Remodeling uses the percentage-of-sales approach for its advertising budget. If the company allocates 5 percent of last year's sales to advertising and had sales of $50 million, what will be Wrecking Ball's advertising budget?
The company allocates 5% of last year's sales in advertising.
last years were $50,000,000
this budgets will 5% of $50,000,000
=5/100 x 50,000,000
=0.05 x 50, 000,000
=$2,500,000
=$2.5 million
