# Question: advertising 1 use wrights budget optimisation theorem to calculate the...

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ADVERTISING:

1. Use Wright’s Budget Optimisation Theorem to calculate the advertising budgets for the following brands based on their financial performance in the preceding year: Brand A has delivered a gross profit of $2.5 million and has conducted one study showing that the brand has an elasticity of 0.23. Brand B has delivered a gross profit of $300 million and has little information on the elasticity of the brand (hint: what would you recommend to use for the elasticity).