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1.A firm thinks its consumer promotion expenditures are too high and wants to cut $500,000 from the budget. Management estimates it will lose 10,000 units

1.A firm thinks its consumer promotion expenditures are too high and wants to cut $500,000 from the budget. Management estimates it will lose 10,000 units in sales if it does. If gross margin is $40 per unit, does cutting the promotion budget make sense?

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