2) Creative Solutions Inc. has a successful brand with the nameTop Goal. The market size in which Top Goal competes is $2 billionand Top Goal has generated sales of $150 million. It has acontribution margin of 30%. Creative Solutions is thinking ofintroducing a new brand under the name of Peak Goal. Peak Goal willcompete in the same market as Top Goal. The budget to launch thisbrand is expected to be $20 million. If it is launched Peak Goalwill capture 10% of the market. It has a contribution margin of40%. Half of the sales of Peak Goal will be cannibalized from thesales of Top Goal. An alternative strategy for Creative Solutionsis to cancel the introduction of Peak Goal and instead to spend the$20 million to promote Top Goal. This action is expected to doublethe sales for Top Goal. Both brands (Top Goal and Peak Goal) wouldsell at the same price. Where should the company spend the $20million and why? You must show all calculations to receivecredit.

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