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Card #1
In 2011, the Cornucopia Products Company (CPC) realized $100,000 in profits. Their 2011 customer base of 20,000 is relatively stable. Based on past trends, they can expect to retain that customer base in 2012. If they make no additional changes in marketing or R & D, then it is reasonable to expect their customer base in 2012 will be remain the same. Increasing their profits will depend on generating new customers either through successful advertising campaigns and or attractive fruits of research & development. The total customer base C in 2012 will be the retained customers plus any new customers. If C is their 2012 customer base in thousands, then their profit P (in thousands of dollars) is given by
P = 0.01C^2 + 7C – 44
Card #2
In 2012, CPC can choose to invest some part of its 2011 profits in one or more forms of advertising. In everything on this card, X = money (in thousands of dollars) invested in that form of advertising, and N is the number of new customers (in thousands), on average, that form of advertising is likely to generate in 2012.
1) Print Media
Investment: no more than $10,000, due to sharply diminishing returns above that threshold.
If X < 10, N = X/2
2) TV & Movie advertising
Investment: minimum of $15,000
If X > 15, N = 2X/3 – 10
3) Web-based advertising
Investment: no lower or upper limit
N = X/4
Card #3
In CPC's Research and Development (R & D), many new products have been developed in the past, contributing to its financial success. In 2012, CPC has already allocated a small baseline budget to ongoing R & D, without any expectation that those results will bear fruit in this calendar year. Beyond that, CPC has to decide about whether to put more money from its 2011 profits into two ongoing projects.
Project A has been in development for a little over a year. It is close to completion. The most reliable data about Project A suggest if CPC makes a $10000 investment in 2011, there's an 80% chance of producing a new product that would add 5,000 new customers in 2012; if CPC makes a $30,000 investment, there's a 20% chance of producing a suite of new products that would add 30,000 new customers.
Project B is a relatively new product, involving some cutting edge technology. It's very expensive, and the results are uncertain. The most reliable data about Project B suggest if CPC makes a $40000 investment in 2011, there's a 40% chance that the new products would add 50,000 new customers in 2012.
Q. At what level of investment would TV & movie advertising create, on average, the same number of new customers as web based advertising?
  • a)
    $16,000
  • b)
    $18,000
  • c)
    $24,000
  • d)
    $36,000
  • e)
    $48,000
Correct answer is option 'C'. Can you explain this answer?
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Card #1In 2011, the Cornucopia Products Company (CPC) realized $100,00...
For this question, all we have to do is look at Card Two. In particular, we just need the formulas for TV & Movie Advertising and for Web-based advertising.
TV & Movie: N = 2X/3 – 10
Web-based: N = X/4
All we have to do is set these two equations equal:
2X/3 – 10 = X/4
Multiply every term by 4:
8X/3 – 40 = X
Now, multiply every term by 3:
8X – 120 = 3X
5X = 120
X = 24
At a level of spending of $24,000, new customers from these two sources are, on average, equal.
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Most Upvoted Answer
Card #1In 2011, the Cornucopia Products Company (CPC) realized $100,00...
For this question, all we have to do is look at Card Two. In particular, we just need the formulas for TV & Movie Advertising and for Web-based advertising.
TV & Movie: N = 2X/3 – 10
Web-based: N = X/4
All we have to do is set these two equations equal:
2X/3 – 10 = X/4
Multiply every term by 4:
8X/3 – 40 = X
Now, multiply every term by 3:
8X – 120 = 3X
5X = 120
X = 24
At a level of spending of $24,000, new customers from these two sources are, on average, equal.
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Community Answer
Card #1In 2011, the Cornucopia Products Company (CPC) realized $100,00...
For this question, all we have to do is look at Card Two. In particular, we just need the formulas for TV & Movie Advertising and for Web-based advertising.
TV & Movie: N = 2X/3 – 10
Web-based: N = X/4
All we have to do is set these two equations equal:
2X/3 – 10 = X/4
Multiply every term by 4:
8X/3 – 40 = X
Now, multiply every term by 3:
8X – 120 = 3X
5X = 120
X = 24
At a level of spending of $24,000, new customers from these two sources are, on average, equal.
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Directions: Read the Passage carefully and answer the question as follow.Marketing executives in television work with a relatively stable advertising medium. In many ways, the television ads aired today are similar to those aired two decades ago. Most television ads still feature actors, still run 30 or 60 seconds, and still show a product. However, the differing dynamics of the Internet pose unique challenges to advertisers, forcing them to adapt their practices and techniques on a regular basis.In the early days of Internet marketing, online advertisers employed banner and pop-up ads to attract customers. These techniques reached large audiences, generated many sales leads, and came at a low cost. However, a small number of Internet users began to consider these advertising techniques intrusive and annoying. Yet because marketing strategies relying heavily on banners and pop-ups produced results, companies invested growing amounts of money into purchasing these ad types in hopes of capturing market share in the burgeoning online economy. As consumers became more sophisticated, frustration with these online advertising techniques grew. Independent programmers began to develop tools that blocked banner and pop-up ads. The popularity of these tools exploded when the search engine Google, at the time an increasingly popular website fighting to solidify its place on the Internet with giants Microsoft and Yahoo, offered free software enabling users to block pop-up ads. The backlash against banner ads grew as new web browsers provided users the ability to block image-based ads such as banner ads. Although banner and pop-up ads still exist, they are far less prominent than during the early days of the Internet.A major development in online marketing came with the introduction of pay-per-click ads. Unlike banner or pop-up ads, which originally required companies to pay every time a website visitor saw an ad, pay-per-click ads allowed companies to pay only when an interested potential customer clicked on an ad. More importantly, however, these ads circumvented the pop-up and banner blockers. As a result of these advantages and the incredible growth in the use of search engines, which provide excellent venues for pay-per-click advertising, companies began turning to pay-per-click marketing in droves. However, as with the banner and pop-up ads that preceded them, pay-per-click ads came with their drawbacks. When companies began pouring billions of dollars into this emerging medium, online advertising specialists started to notice the presence of what would later be called click fraud: representatives of a company with no interest in the product advertised by a competitor click on the competitors ads simply to increase the marketing cost of the competitor. Click fraud grew so rapidly that marketers sought to diversify their online positions away from pay-per-click marketing through new mediums.Although pay-per-click advertising remains a common and effective advertising tool, marketers adapted yet again to the changing dynamics of the Internet by adopting new techniques such as pay-per-performance advertising, search engine optimization, and affiliate marketing. As the pace of the Internets evolution increases, it seems all the more likely that advertising successfully on the Internet will require a strategy that shuns constancy and embraces change.Q.Which of the following most accurately states the main idea of the passage?

Directions: Read the Passage carefully and answer the question as follow.Marketing executives in television work with a relatively stable advertising medium. In many ways, the television ads aired today are similar to those aired two decades ago. Most television ads still feature actors, still run 30 or 60 seconds, and still show a product. However, the differing dynamics of the Internet pose unique challenges to advertisers, forcing them to adapt their practices and techniques on a regular basis.In the early days of Internet marketing, online advertisers employed banner and pop-up ads to attract customers. These techniques reached large audiences, generated many sales leads, and came at a low cost. However, a small number of Internet users began to consider these advertising techniques intrusive and annoying. Yet because marketing strategies relying heavily on banners and pop-ups produced results, companies invested growing amounts of money into purchasing these ad types in hopes of capturing market share in the burgeoning online economy. As consumers became more sophisticated, frustration with these online advertising techniques grew. Independent programmers began to develop tools that blocked banner and pop-up ads. The popularity of these tools exploded when the search engine Google, at the time an increasingly popular website fighting to solidify its place on the Internet with giants Microsoft and Yahoo, offered free software enabling users to block pop-up ads. The backlash against banner ads grew as new web browsers provided users the ability to block image-based ads such as banner ads. Although banner and pop-up ads still exist, they are far less prominent than during the early days of the Internet.A major development in online marketing came with the introduction of pay-per-click ads. Unlike banner or pop-up ads, which originally required companies to pay every time a website visitor saw an ad, pay-per-click ads allowed companies to pay only when an interested potential customer clicked on an ad. More importantly, however, these ads circumvented the pop-up and banner blockers. As a result of these advantages and the incredible growth in the use of search engines, which provide excellent venues for pay-per-click advertising, companies began turning to pay-per-click marketing in droves. However, as with the banner and pop-up ads that preceded them, pay-per-click ads came with their drawbacks. When companies began pouring billions of dollars into this emerging medium, online advertising specialists started to notice the presence of what would later be called click fraud: representatives of a company with no interest in the product advertised by a competitor click on the competitors ads simply to increase the marketing cost of the competitor. Click fraud grew so rapidly that marketers sought to diversify their online positions away from pay-per-click marketing through new mediums.Although pay-per-click advertising remains a common and effective advertising tool, marketers adapted yet again to the changing dynamics of the Internet by adopting new techniques such as pay-per-performance advertising, search engine optimization, and affiliate marketing. As the pace of the Internets evolution increases, it seems all the more likely that advertising successfully on the Internet will require a strategy that shuns constancy and embraces change.Q.The author implies what about the future of pay-per-performance advertising?

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Directions: Read the Passage carefully and answer the question as follow.Marketing executives in television work with a relatively stable advertising medium. In many ways, the television ads aired today are similar to those aired two decades ago. Most television ads still feature actors, still run 30 or 60 seconds, and still show a product. However, the differing dynamics of the Internet pose unique challenges to advertisers, forcing them to adapt their practices and techniques on a regular basis.In the early days of Internet marketing, online advertisers employed banner and pop-up ads to attract customers. These techniques reached large audiences, generated many sales leads, and came at a low cost. However, a small number of Internet users began to consider these advertising techniques intrusive and annoying. Yet because marketing strategies relying heavily on banners and pop-ups produced results, companies invested growing amounts of money into purchasing these ad types in hopes of capturing market share in the burgeoning online economy. As consumers became more sophisticated, frustration with these online advertising techniques grew. Independent programmers began to develop tools that blocked banner and pop-up ads. The popularity of these tools exploded when the search engine Google, at the time an increasingly popular website fighting to solidify its place on the Internet with giants Microsoft and Yahoo, offered free software enabling users to block pop-up ads. The backlash against banner ads grew as new web browsers provided users the ability to block image-based ads such as banner ads. Although banner and pop-up ads still exist, they are far less prominent than during the early days of the Internet.A major development in online marketing came with the introduction of pay-per-click ads. Unlike banner or pop-up ads, which originally required companies to pay every time a website visitor saw an ad, pay-per-click ads allowed companies to pay only when an interested potential customer clicked on an ad. More importantly, however, these ads circumvented the pop-up and banner blockers. As a result of these advantages and the incredible growth in the use of search engines, which provide excellent venues for pay-per-click advertising, companies began turning to pay-per-click marketing in droves. However, as with the banner and pop-up ads that preceded them, pay-per-click ads came with their drawbacks. When companies began pouring billions of dollars into this emerging medium, online advertising specialists started to notice the presence of what would later be called click fraud: representatives of a company with no interest in the product advertised by a competitor click on the competitors ads simply to increase the marketing cost of the competitor. Click fraud grew so rapidly that marketers sought to diversify their online positions away from pay-per-click marketing through new mediums.Although pay-per-click advertising remains a common and effective advertising tool, marketers adapted yet again to the changing dynamics of the Internet by adopting new techniques such as pay-per-performance advertising, search engine optimization, and affiliate marketing. As the pace of the Internets evolution increases, it seems all the more likely that advertising successfully on the Internet will require a strategy that shuns constancy and embraces change.Q.According to the passage, the largest point at which the television and Internet differ as an advertising medium is

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Card #1In 2011, the Cornucopia Products Company (CPC) realized $100,000 in profits. Their 2011 customer base of 20,000 is relatively stable. Based on past trends, they can expect to retain that customer base in 2012. If they make no additional changes in marketing or R & D, then it is reasonable to expect their customer base in 2012 will be remain the same. Increasing their profits will depend on generating new customers either through successful advertising campaigns and or attractive fruits of research & development. The total customer base C in 2012 will be the retained customers plus any new customers. If C is their 2012 customer base in thousands, then their profit P (in thousands of dollars) is given byP = 0.01C^2 + 7C – 44Card #2In 2012, CPC can choose to invest some part of its 2011 profits in one or more forms of advertising. In everything on this card, X = money (in thousands of dollars) invested in that form of advertising, and N is the number of new customers (in thousands), on average, that form of advertising is likely to generate in 2012.1) Print MediaInvestment: no more than $10,000, due to sharply diminishing returns above that threshold.If X < 10, N = X/22) TV & Movie advertisingInvestment: minimum of $15,000If X > 15, N = 2X/3 – 103) Web-based advertisingInvestment: no lower or upper limitN = X/4Card #3In CPCs Research and Development (R & D), many new products have been developed in the past, contributing to its financial success. In 2012, CPC has already allocated a small baseline budget to ongoing R & D, without any expectation that those results will bear fruit in this calendar year. Beyond that, CPC has to decide about whether to put more money from its 2011 profits into two ongoing projects.Project A has been in development for a little over a year. It is close to completion. The most reliable data about Project A suggest if CPC makes a $10000 investment in 2011, theres an 80% chance of producing a new product that would add 5,000 new customers in 2012; if CPC makes a $30,000 investment, theres a 20% chance of producing a suite of new products that would add 30,000 new customers.Project B is a relatively new product, involving some cutting edge technology. Its very expensive, and the results are uncertain. The most reliable data about Project B suggest if CPC makes a $40000 investment in 2011, theres a 40% chance that the new products would add 50,000 new customers in 2012.Q.At what level of investment would TV & movie advertising create, on average, the same number of new customers as web based advertising?a)$16,000b)$18,000c)$24,000d)$36,000e)$48,000Correct answer is option 'C'. Can you explain this answer?
Question Description
Card #1In 2011, the Cornucopia Products Company (CPC) realized $100,000 in profits. Their 2011 customer base of 20,000 is relatively stable. Based on past trends, they can expect to retain that customer base in 2012. If they make no additional changes in marketing or R & D, then it is reasonable to expect their customer base in 2012 will be remain the same. Increasing their profits will depend on generating new customers either through successful advertising campaigns and or attractive fruits of research & development. The total customer base C in 2012 will be the retained customers plus any new customers. If C is their 2012 customer base in thousands, then their profit P (in thousands of dollars) is given byP = 0.01C^2 + 7C – 44Card #2In 2012, CPC can choose to invest some part of its 2011 profits in one or more forms of advertising. In everything on this card, X = money (in thousands of dollars) invested in that form of advertising, and N is the number of new customers (in thousands), on average, that form of advertising is likely to generate in 2012.1) Print MediaInvestment: no more than $10,000, due to sharply diminishing returns above that threshold.If X < 10, N = X/22) TV & Movie advertisingInvestment: minimum of $15,000If X > 15, N = 2X/3 – 103) Web-based advertisingInvestment: no lower or upper limitN = X/4Card #3In CPCs Research and Development (R & D), many new products have been developed in the past, contributing to its financial success. In 2012, CPC has already allocated a small baseline budget to ongoing R & D, without any expectation that those results will bear fruit in this calendar year. Beyond that, CPC has to decide about whether to put more money from its 2011 profits into two ongoing projects.Project A has been in development for a little over a year. It is close to completion. The most reliable data about Project A suggest if CPC makes a $10000 investment in 2011, theres an 80% chance of producing a new product that would add 5,000 new customers in 2012; if CPC makes a $30,000 investment, theres a 20% chance of producing a suite of new products that would add 30,000 new customers.Project B is a relatively new product, involving some cutting edge technology. Its very expensive, and the results are uncertain. The most reliable data about Project B suggest if CPC makes a $40000 investment in 2011, theres a 40% chance that the new products would add 50,000 new customers in 2012.Q.At what level of investment would TV & movie advertising create, on average, the same number of new customers as web based advertising?a)$16,000b)$18,000c)$24,000d)$36,000e)$48,000Correct answer is option 'C'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about Card #1In 2011, the Cornucopia Products Company (CPC) realized $100,000 in profits. Their 2011 customer base of 20,000 is relatively stable. Based on past trends, they can expect to retain that customer base in 2012. If they make no additional changes in marketing or R & D, then it is reasonable to expect their customer base in 2012 will be remain the same. Increasing their profits will depend on generating new customers either through successful advertising campaigns and or attractive fruits of research & development. The total customer base C in 2012 will be the retained customers plus any new customers. If C is their 2012 customer base in thousands, then their profit P (in thousands of dollars) is given byP = 0.01C^2 + 7C – 44Card #2In 2012, CPC can choose to invest some part of its 2011 profits in one or more forms of advertising. In everything on this card, X = money (in thousands of dollars) invested in that form of advertising, and N is the number of new customers (in thousands), on average, that form of advertising is likely to generate in 2012.1) Print MediaInvestment: no more than $10,000, due to sharply diminishing returns above that threshold.If X < 10, N = X/22) TV & Movie advertisingInvestment: minimum of $15,000If X > 15, N = 2X/3 – 103) Web-based advertisingInvestment: no lower or upper limitN = X/4Card #3In CPCs Research and Development (R & D), many new products have been developed in the past, contributing to its financial success. In 2012, CPC has already allocated a small baseline budget to ongoing R & D, without any expectation that those results will bear fruit in this calendar year. Beyond that, CPC has to decide about whether to put more money from its 2011 profits into two ongoing projects.Project A has been in development for a little over a year. It is close to completion. The most reliable data about Project A suggest if CPC makes a $10000 investment in 2011, theres an 80% chance of producing a new product that would add 5,000 new customers in 2012; if CPC makes a $30,000 investment, theres a 20% chance of producing a suite of new products that would add 30,000 new customers.Project B is a relatively new product, involving some cutting edge technology. Its very expensive, and the results are uncertain. The most reliable data about Project B suggest if CPC makes a $40000 investment in 2011, theres a 40% chance that the new products would add 50,000 new customers in 2012.Q.At what level of investment would TV & movie advertising create, on average, the same number of new customers as web based advertising?a)$16,000b)$18,000c)$24,000d)$36,000e)$48,000Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Card #1In 2011, the Cornucopia Products Company (CPC) realized $100,000 in profits. Their 2011 customer base of 20,000 is relatively stable. Based on past trends, they can expect to retain that customer base in 2012. If they make no additional changes in marketing or R & D, then it is reasonable to expect their customer base in 2012 will be remain the same. Increasing their profits will depend on generating new customers either through successful advertising campaigns and or attractive fruits of research & development. The total customer base C in 2012 will be the retained customers plus any new customers. If C is their 2012 customer base in thousands, then their profit P (in thousands of dollars) is given byP = 0.01C^2 + 7C – 44Card #2In 2012, CPC can choose to invest some part of its 2011 profits in one or more forms of advertising. In everything on this card, X = money (in thousands of dollars) invested in that form of advertising, and N is the number of new customers (in thousands), on average, that form of advertising is likely to generate in 2012.1) Print MediaInvestment: no more than $10,000, due to sharply diminishing returns above that threshold.If X < 10, N = X/22) TV & Movie advertisingInvestment: minimum of $15,000If X > 15, N = 2X/3 – 103) Web-based advertisingInvestment: no lower or upper limitN = X/4Card #3In CPCs Research and Development (R & D), many new products have been developed in the past, contributing to its financial success. In 2012, CPC has already allocated a small baseline budget to ongoing R & D, without any expectation that those results will bear fruit in this calendar year. Beyond that, CPC has to decide about whether to put more money from its 2011 profits into two ongoing projects.Project A has been in development for a little over a year. It is close to completion. The most reliable data about Project A suggest if CPC makes a $10000 investment in 2011, theres an 80% chance of producing a new product that would add 5,000 new customers in 2012; if CPC makes a $30,000 investment, theres a 20% chance of producing a suite of new products that would add 30,000 new customers.Project B is a relatively new product, involving some cutting edge technology. Its very expensive, and the results are uncertain. The most reliable data about Project B suggest if CPC makes a $40000 investment in 2011, theres a 40% chance that the new products would add 50,000 new customers in 2012.Q.At what level of investment would TV & movie advertising create, on average, the same number of new customers as web based advertising?a)$16,000b)$18,000c)$24,000d)$36,000e)$48,000Correct answer is option 'C'. Can you explain this answer?.
Solutions for Card #1In 2011, the Cornucopia Products Company (CPC) realized $100,000 in profits. Their 2011 customer base of 20,000 is relatively stable. Based on past trends, they can expect to retain that customer base in 2012. If they make no additional changes in marketing or R & D, then it is reasonable to expect their customer base in 2012 will be remain the same. Increasing their profits will depend on generating new customers either through successful advertising campaigns and or attractive fruits of research & development. The total customer base C in 2012 will be the retained customers plus any new customers. If C is their 2012 customer base in thousands, then their profit P (in thousands of dollars) is given byP = 0.01C^2 + 7C – 44Card #2In 2012, CPC can choose to invest some part of its 2011 profits in one or more forms of advertising. In everything on this card, X = money (in thousands of dollars) invested in that form of advertising, and N is the number of new customers (in thousands), on average, that form of advertising is likely to generate in 2012.1) Print MediaInvestment: no more than $10,000, due to sharply diminishing returns above that threshold.If X < 10, N = X/22) TV & Movie advertisingInvestment: minimum of $15,000If X > 15, N = 2X/3 – 103) Web-based advertisingInvestment: no lower or upper limitN = X/4Card #3In CPCs Research and Development (R & D), many new products have been developed in the past, contributing to its financial success. In 2012, CPC has already allocated a small baseline budget to ongoing R & D, without any expectation that those results will bear fruit in this calendar year. Beyond that, CPC has to decide about whether to put more money from its 2011 profits into two ongoing projects.Project A has been in development for a little over a year. It is close to completion. The most reliable data about Project A suggest if CPC makes a $10000 investment in 2011, theres an 80% chance of producing a new product that would add 5,000 new customers in 2012; if CPC makes a $30,000 investment, theres a 20% chance of producing a suite of new products that would add 30,000 new customers.Project B is a relatively new product, involving some cutting edge technology. Its very expensive, and the results are uncertain. The most reliable data about Project B suggest if CPC makes a $40000 investment in 2011, theres a 40% chance that the new products would add 50,000 new customers in 2012.Q.At what level of investment would TV & movie advertising create, on average, the same number of new customers as web based advertising?a)$16,000b)$18,000c)$24,000d)$36,000e)$48,000Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for GMAT. Download more important topics, notes, lectures and mock test series for GMAT Exam by signing up for free.
Here you can find the meaning of Card #1In 2011, the Cornucopia Products Company (CPC) realized $100,000 in profits. Their 2011 customer base of 20,000 is relatively stable. Based on past trends, they can expect to retain that customer base in 2012. If they make no additional changes in marketing or R & D, then it is reasonable to expect their customer base in 2012 will be remain the same. Increasing their profits will depend on generating new customers either through successful advertising campaigns and or attractive fruits of research & development. The total customer base C in 2012 will be the retained customers plus any new customers. If C is their 2012 customer base in thousands, then their profit P (in thousands of dollars) is given byP = 0.01C^2 + 7C – 44Card #2In 2012, CPC can choose to invest some part of its 2011 profits in one or more forms of advertising. In everything on this card, X = money (in thousands of dollars) invested in that form of advertising, and N is the number of new customers (in thousands), on average, that form of advertising is likely to generate in 2012.1) Print MediaInvestment: no more than $10,000, due to sharply diminishing returns above that threshold.If X < 10, N = X/22) TV & Movie advertisingInvestment: minimum of $15,000If X > 15, N = 2X/3 – 103) Web-based advertisingInvestment: no lower or upper limitN = X/4Card #3In CPCs Research and Development (R & D), many new products have been developed in the past, contributing to its financial success. In 2012, CPC has already allocated a small baseline budget to ongoing R & D, without any expectation that those results will bear fruit in this calendar year. Beyond that, CPC has to decide about whether to put more money from its 2011 profits into two ongoing projects.Project A has been in development for a little over a year. It is close to completion. The most reliable data about Project A suggest if CPC makes a $10000 investment in 2011, theres an 80% chance of producing a new product that would add 5,000 new customers in 2012; if CPC makes a $30,000 investment, theres a 20% chance of producing a suite of new products that would add 30,000 new customers.Project B is a relatively new product, involving some cutting edge technology. Its very expensive, and the results are uncertain. The most reliable data about Project B suggest if CPC makes a $40000 investment in 2011, theres a 40% chance that the new products would add 50,000 new customers in 2012.Q.At what level of investment would TV & movie advertising create, on average, the same number of new customers as web based advertising?a)$16,000b)$18,000c)$24,000d)$36,000e)$48,000Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Card #1In 2011, the Cornucopia Products Company (CPC) realized $100,000 in profits. Their 2011 customer base of 20,000 is relatively stable. Based on past trends, they can expect to retain that customer base in 2012. If they make no additional changes in marketing or R & D, then it is reasonable to expect their customer base in 2012 will be remain the same. Increasing their profits will depend on generating new customers either through successful advertising campaigns and or attractive fruits of research & development. The total customer base C in 2012 will be the retained customers plus any new customers. If C is their 2012 customer base in thousands, then their profit P (in thousands of dollars) is given byP = 0.01C^2 + 7C – 44Card #2In 2012, CPC can choose to invest some part of its 2011 profits in one or more forms of advertising. In everything on this card, X = money (in thousands of dollars) invested in that form of advertising, and N is the number of new customers (in thousands), on average, that form of advertising is likely to generate in 2012.1) Print MediaInvestment: no more than $10,000, due to sharply diminishing returns above that threshold.If X < 10, N = X/22) TV & Movie advertisingInvestment: minimum of $15,000If X > 15, N = 2X/3 – 103) Web-based advertisingInvestment: no lower or upper limitN = X/4Card #3In CPCs Research and Development (R & D), many new products have been developed in the past, contributing to its financial success. In 2012, CPC has already allocated a small baseline budget to ongoing R & D, without any expectation that those results will bear fruit in this calendar year. Beyond that, CPC has to decide about whether to put more money from its 2011 profits into two ongoing projects.Project A has been in development for a little over a year. It is close to completion. The most reliable data about Project A suggest if CPC makes a $10000 investment in 2011, theres an 80% chance of producing a new product that would add 5,000 new customers in 2012; if CPC makes a $30,000 investment, theres a 20% chance of producing a suite of new products that would add 30,000 new customers.Project B is a relatively new product, involving some cutting edge technology. Its very expensive, and the results are uncertain. The most reliable data about Project B suggest if CPC makes a $40000 investment in 2011, theres a 40% chance that the new products would add 50,000 new customers in 2012.Q.At what level of investment would TV & movie advertising create, on average, the same number of new customers as web based advertising?a)$16,000b)$18,000c)$24,000d)$36,000e)$48,000Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Card #1In 2011, the Cornucopia Products Company (CPC) realized $100,000 in profits. Their 2011 customer base of 20,000 is relatively stable. Based on past trends, they can expect to retain that customer base in 2012. If they make no additional changes in marketing or R & D, then it is reasonable to expect their customer base in 2012 will be remain the same. Increasing their profits will depend on generating new customers either through successful advertising campaigns and or attractive fruits of research & development. The total customer base C in 2012 will be the retained customers plus any new customers. If C is their 2012 customer base in thousands, then their profit P (in thousands of dollars) is given byP = 0.01C^2 + 7C – 44Card #2In 2012, CPC can choose to invest some part of its 2011 profits in one or more forms of advertising. In everything on this card, X = money (in thousands of dollars) invested in that form of advertising, and N is the number of new customers (in thousands), on average, that form of advertising is likely to generate in 2012.1) Print MediaInvestment: no more than $10,000, due to sharply diminishing returns above that threshold.If X < 10, N = X/22) TV & Movie advertisingInvestment: minimum of $15,000If X > 15, N = 2X/3 – 103) Web-based advertisingInvestment: no lower or upper limitN = X/4Card #3In CPCs Research and Development (R & D), many new products have been developed in the past, contributing to its financial success. In 2012, CPC has already allocated a small baseline budget to ongoing R & D, without any expectation that those results will bear fruit in this calendar year. Beyond that, CPC has to decide about whether to put more money from its 2011 profits into two ongoing projects.Project A has been in development for a little over a year. It is close to completion. The most reliable data about Project A suggest if CPC makes a $10000 investment in 2011, theres an 80% chance of producing a new product that would add 5,000 new customers in 2012; if CPC makes a $30,000 investment, theres a 20% chance of producing a suite of new products that would add 30,000 new customers.Project B is a relatively new product, involving some cutting edge technology. Its very expensive, and the results are uncertain. The most reliable data about Project B suggest if CPC makes a $40000 investment in 2011, theres a 40% chance that the new products would add 50,000 new customers in 2012.Q.At what level of investment would TV & movie advertising create, on average, the same number of new customers as web based advertising?a)$16,000b)$18,000c)$24,000d)$36,000e)$48,000Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Card #1In 2011, the Cornucopia Products Company (CPC) realized $100,000 in profits. Their 2011 customer base of 20,000 is relatively stable. Based on past trends, they can expect to retain that customer base in 2012. If they make no additional changes in marketing or R & D, then it is reasonable to expect their customer base in 2012 will be remain the same. Increasing their profits will depend on generating new customers either through successful advertising campaigns and or attractive fruits of research & development. The total customer base C in 2012 will be the retained customers plus any new customers. If C is their 2012 customer base in thousands, then their profit P (in thousands of dollars) is given byP = 0.01C^2 + 7C – 44Card #2In 2012, CPC can choose to invest some part of its 2011 profits in one or more forms of advertising. In everything on this card, X = money (in thousands of dollars) invested in that form of advertising, and N is the number of new customers (in thousands), on average, that form of advertising is likely to generate in 2012.1) Print MediaInvestment: no more than $10,000, due to sharply diminishing returns above that threshold.If X < 10, N = X/22) TV & Movie advertisingInvestment: minimum of $15,000If X > 15, N = 2X/3 – 103) Web-based advertisingInvestment: no lower or upper limitN = X/4Card #3In CPCs Research and Development (R & D), many new products have been developed in the past, contributing to its financial success. In 2012, CPC has already allocated a small baseline budget to ongoing R & D, without any expectation that those results will bear fruit in this calendar year. Beyond that, CPC has to decide about whether to put more money from its 2011 profits into two ongoing projects.Project A has been in development for a little over a year. It is close to completion. The most reliable data about Project A suggest if CPC makes a $10000 investment in 2011, theres an 80% chance of producing a new product that would add 5,000 new customers in 2012; if CPC makes a $30,000 investment, theres a 20% chance of producing a suite of new products that would add 30,000 new customers.Project B is a relatively new product, involving some cutting edge technology. Its very expensive, and the results are uncertain. The most reliable data about Project B suggest if CPC makes a $40000 investment in 2011, theres a 40% chance that the new products would add 50,000 new customers in 2012.Q.At what level of investment would TV & movie advertising create, on average, the same number of new customers as web based advertising?a)$16,000b)$18,000c)$24,000d)$36,000e)$48,000Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Card #1In 2011, the Cornucopia Products Company (CPC) realized $100,000 in profits. Their 2011 customer base of 20,000 is relatively stable. Based on past trends, they can expect to retain that customer base in 2012. If they make no additional changes in marketing or R & D, then it is reasonable to expect their customer base in 2012 will be remain the same. Increasing their profits will depend on generating new customers either through successful advertising campaigns and or attractive fruits of research & development. The total customer base C in 2012 will be the retained customers plus any new customers. If C is their 2012 customer base in thousands, then their profit P (in thousands of dollars) is given byP = 0.01C^2 + 7C – 44Card #2In 2012, CPC can choose to invest some part of its 2011 profits in one or more forms of advertising. In everything on this card, X = money (in thousands of dollars) invested in that form of advertising, and N is the number of new customers (in thousands), on average, that form of advertising is likely to generate in 2012.1) Print MediaInvestment: no more than $10,000, due to sharply diminishing returns above that threshold.If X < 10, N = X/22) TV & Movie advertisingInvestment: minimum of $15,000If X > 15, N = 2X/3 – 103) Web-based advertisingInvestment: no lower or upper limitN = X/4Card #3In CPCs Research and Development (R & D), many new products have been developed in the past, contributing to its financial success. In 2012, CPC has already allocated a small baseline budget to ongoing R & D, without any expectation that those results will bear fruit in this calendar year. Beyond that, CPC has to decide about whether to put more money from its 2011 profits into two ongoing projects.Project A has been in development for a little over a year. It is close to completion. The most reliable data about Project A suggest if CPC makes a $10000 investment in 2011, theres an 80% chance of producing a new product that would add 5,000 new customers in 2012; if CPC makes a $30,000 investment, theres a 20% chance of producing a suite of new products that would add 30,000 new customers.Project B is a relatively new product, involving some cutting edge technology. Its very expensive, and the results are uncertain. The most reliable data about Project B suggest if CPC makes a $40000 investment in 2011, theres a 40% chance that the new products would add 50,000 new customers in 2012.Q.At what level of investment would TV & movie advertising create, on average, the same number of new customers as web based advertising?a)$16,000b)$18,000c)$24,000d)$36,000e)$48,000Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice GMAT tests.
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