Hat Inc.company spends $100 million on promotional activity for 25 percent of the domestic hat market.Sombrero Inc. at 10 percent of the market, decides to increase its share to 15 percent by increasing its promotional activity.Sombrero Inc.estimates that Hat Inc.spends $50 million dollars for each 12.5 percent increment in market share.Sombrero increases its current budget by $20 million to capture the extra 5 percent of the market.Which of the following BEST describes the budgeting method used?

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The Answer of Hat Inc.company spends $100 million on promotional activity for 25 percent of the domestic hat market.Sombrero Inc. at 10 percent of the market, decides to increase its share to 15 percent by increasing its promotional activity.Sombrero Inc.estimates that Hat Inc.spends $50 million dollars for each 12.5 percent increment in market share.Sombrero increases its current budget by $20 million to capture the extra 5 percent of the market.Which of the following BEST describes the budgeting method used?

Hat IncCompany Spends $100 Million on Promotional Activity for 25 Percent