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Refer to the original data. Assume that the company sold 45000
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.
This question was answered on: Feb 21, 2020
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