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Refer to the original data. Assume that the company sold 45000
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Refer to the original data. Assume that the company sold 45000 units last year. The sales manager is convinced that a 13% reduction is the selling price, combined with a 47000 increase in advertising expenditures, would increase annual unit sales by 50%.

a. Prepare two contribution format income statements, one showing the results of last year's operations and one showing what the results of operations would be if these changes were made.

 







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This question was answered on: Feb 21, 2020

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