Gabrielle is the chief marketing officer of boyd pharmaceuticals. she is meeting with trent, the chief financial officer to decide on the company's marketing communications budget. after extensive discussions, they decide that the size of the budget will be calculated as a fraction of the overall turnover. what method did gabrielle and trent use to arrive at the marketing communications budget?

Varto company has 9,400 units of its sole product in inventory that it produced last year at a cost of $23 each. this year’s model is superior to last year’s, and the 9,400 units cannot be sold at last year’s regular selling price of $42 each. varto has two alternatives for these items: (1) they can be sold to a wholesaler for $8 each, or (2) they can be reworked at a cost of $251,100 and then sold for $34 each. prepare an analysis to determine whether varto should sell the products as is or rework them and then sell them.