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A company typically sells 100,000 units at $10 per unit. It runs a promotion that discounts each unit by $3 per unit. To promote the

A company typically sells 100,000 units at $10 per unit. It runs a promotion that discounts each unit by $3 per unit. To promote the discount, the company pays a flat fee of $50,000. The company sells 50,000 additional units in incremental sales.

What is the cost of this promotion?

Should the company proceed with this promotion and discount?

Why or why not?

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