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The maximum amount that the company can afford to pay its brand ambassador.
Data Analysis and Interpretation
Rs. 45 lakhs
Rs. 39 lakhs
Rs. 36 lakhs
Rs. 40 lakhs
Rs. 42 lakhs
Correct Option is Rs. 39 lakhs
Solution:maximum profit given to brand ambassador is the increase in profit of company after advertising with brand ambassador. Required sum=(40000-38500)[(10000-8000)×0.4+(8000-5000)×0.4+(5000-3000)×0.3] ⇒1500×(800+1200+600) ⇒39 lakhs
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