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6. Assume that your answer to Question 4 is correct. Murad could hire a new sales agent who would increase demand to $1.50 per liter

6. Assume that your answer to Question 4 is correct. Murad could hire a new sales agent who would increase demand to $1.50 per liter for the entire amount of asphalt base produced annually. The agent would take a 5% sales commission and a $100,000 base salary and $20,000 in one time product training. Perform an incremental assuming your answer to Question 4 is the status quo. Question 4 answer: | million barrels, 200,000 liters are produced. From the given information in exhibit 2, the expected sales price $1.30 for the first 50,000 liters produced meaning this is high that the original cost of production. Overall, Murad is better off selling the initial 50,000 liters in the external market. Given the remaining pricing tiers, Murad has the option to sell 50% of the asphalt base in-house for $0.80 per liter and the remaining half externally as it exceeds the original production cost for the given prices in exhibit 2, I.E 50,000 liters at $1.20, next 50,000 liters at $1.10, 50,000 liters at $1.00, remaining amounts at $0.75

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