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Question 1: Brand managers know that increasing promotional budgets eventually result in diminishing returns. The first one million dollars typically results in a 26% increase in awareness, while the second million results in adding another 18% and the third million in a 5% increase. Andrews's product Able currently has an awareness level of 78% . While an important product for Andrews, Able's promotion budget will be reduced to one million dollars for the upcoming year. Assuming that Able loses one-third of its awareness each year, what will Able's awareness level be next year?
Prepare journal entries to record the information above. Key your entries to the letters a through l.
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