The ____________ method of promotion budgeting takes an investment approach in that goals are set for the upcoming year and then promotional dollars are budgeted to support the achievement of those goals.

Risa, Inc has provided the following extracts from their budget for the first quarter of the forthcoming year

Jan Feb March Purchases on account $264,000 $295,000 $320,000 The vendors are allowed the following terms of payment: Month of purchase 30% First month after the purchase 35% Second month after the purchase 35% Calculate the total payment on account for the month of March. A) $168,275 B) $136,955 C) $320,000 D) $291,650

Ivan was interested in buying a 40 acre parcel of commercially zoned property offered for sale by Land Co. He thought he might build a professional office complex, but would not know for sure until he consulted with soil engineers and architects. To make certain that the property was not taken off the market or sold to another buyer while he was deciding, he gave Land Co. $15,000 to keep the offer open for 3 months. This is an example of a __________________

a. Merchant's firm offer b. Option contract c. Preliminary negotiation d. Bargained for exchange