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QUESTION

Refer to the original data. Assume again that the company sold 16,500 units last year. The president does not want to change the selling price.

Refer to the original data. Assume again that the company sold 16,500 units last year. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $0.75 per unit. He thinks that this move, combined with some increase in advertising, would increase annual sales by 20%. By how much could advertising be increased with profits remaining unchanged

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