Lesson eLearning

A cosmetics brand plans to allocate 3% of its projected sales for promotion of a new skincare line. If the projected sales are Rs. 8 crore, what is the promotional budget required for this product line?

medium 2 marks Class 12 · Business Studies · Marketing Management
Answer
Rs 24 lakh

The correct answer is Rs 24 lakh — Thus the promotional budget is Rs 24 lakh.

Step-by-step solution

  1. Convert the percentage to decimal: 3 % = 0.03.
  2. Multiply 0.03 by projected sales: 0.03 × 8 crore = 0.24 crore.
  3. Convert crore to lakh: 0.24 crore = 24 lakh.
  4. Thus the promotional budget is Rs 24 lakh.
Common mistake: Using 3% of the wrong sales figure

Concept tested: Promotional budgeting

Published · How this solution was prepared and checked

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