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Business, 06.03.2020 21:28 tess97

The selling price is $40/unit, variable costs are $30/unit, and fixed costs are $3,000 in total. Sales volume decreased to 200 units because of a recession. You are considering two options to stimulate sales:(1) Reduce the price to $38/unit. This will increase sales volume by 20%.(2) Buy additional advertising for $300 and keep the original price. This will increase sales volume by 20%.

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The selling price is $40/unit, variable costs are $30/unit, and fixed costs are $3,000 in total. Sal...
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