Jason's Corp. is a merchandiser that sells it's product for $34 per unit. Variable expenses...
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Jason's Corp. is a merchandiser that sells it's product for $34 per unit. Variable expenses are $17 per unit, and fixed expenses total $10,000 annually. Assume that sold 22,400 units last year. The manager wants to increase the sales commission by $0.8 per unit. He thinks that this move, combined with some increase in advertising, would double annual unit sales.
1) By how much could advertising be increased with Jason's profits remaining unchanged?
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