The chief marketing officer of the kimberly-clark company will be using a percentage of sales method to set the advertising budget for the year. historically, the company uses 7% of sales for promoting their brand of toilet paper each year. based on market data, the company estimates to achieve $2.8 million dollars in sales this coming year. what will their budget be for promoting the brand?

M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 235 units, and this is constant throughout the year. carrying cost is estimated to be $1.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? b) how many orders per year are needed with the optimal policy? c) what is the average inventory if costs are minimized? d) suppose that the ordering cost is not $21, and cotteleer has been ordering 125 units each time an order is placed. for this order policy (of q = 125) to be optimal, determine what the ordering cost would have to be.