Refer to the original data. Assume again that the company sold 31,000 units last
ID: 2374664 • Letter: R
Question
Refer to the original data. Assume again that the company sold 31,000 units last year. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $2.1 per unit. He thinks that this move, combined with some increase in advertising, would increase annual sales by 35%. By how much could advertising be increased with profits remaining unchanged? (Negative amount should be indicated by a minus sign. Do not prepare an income statement; use the incremental analysis approach. Omit the "$" sign in your response.)
Refer to the original data. Assume again that the company sold 31,000 units last year. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $2.1 per unit. He thinks that this move, combined with some increase in advertising, would increase annual sales by 35%. By how much could advertising be increased with profits remaining unchanged? (Negative amount should be indicated by a minus sign. Do not prepare an income statement; use the incremental analysis approach. Omit the "$" sign in your response.)
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