Lesson eLearning

A sports apparel company allocates 4% of its projected sales to promotion for a new sports shoe line. If the projected sales are Rs. 12 crore, what is the promotional budget required for this product line?

easy 1 mark Class 12 · Business Studies · Marketing Management
Answer
Rs. 48 lakh

The correct answer is Rs. 48 lakh — 0.48 crore equals Rs. 48 lakh.

Step-by-step solution

  1. Compute 4% of Rs. 12 crore.
  2. 4% = 0.04.
  3. 0.04 × 12 crore = 0.48 crore.
  4. 0.48 crore equals Rs. 48 lakh.
Common mistake: Confusing percent of sales with percent of profit, or mis‑calculating rupee conversion.

Concept tested: Promotional budgeting

Published · How this solution was prepared and checked

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