GEICO, the number-two auto insurer with $13 billion in revenue last year, spent $1.3 billion on advertising that year and plans to continue spending the same percentage of sales on advertising next year. The average advertising-to-sales ratio for the insurance industry is 0.2 percent of sales. GEICO projects $15 billion in sales next year. The GEICO will budget $1.5 billion for advertising next year based on the advertising-to-sales ratio for the last year. How much would GEICO budget if the company based its advertising spending on the industry advertising-to-sales ratio? Is GEICO consistent with average industry ad spending? |billion. (Round to three decimal places.) Using the industry's average advertising-to-sales ratio, GEICO would budget $ GEICO with the average industry spend on advertising. is not consistent is consistent
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