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Linda_us, Finance, Accounts & Homework Tutor
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Assume again that the company sold 28,000 units last year.

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Assume again that the company sold 28,000 units last year. The president feels that it would be unwise to change the selling price. Instead, he wants to increase the sales commission $2 per unit. He thinks that this move, combined with some increase in advertising, would cause annual sales to double. By how much could advertising be increased with profits remaining unchanged? (Use the incremental analysis approach.)

$15/unit $6/variable unit cost $180000 fixed expense

Submitted: 7 years ago.
Category: Homework
Expert:  Linda_us replied 7 years ago.

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