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A firm thinks its consumer promotion expenditures are too high and wants to cut $500,000 from promotional spending. Management estimates it will lose 10,000 units
A firm thinks its consumer promotion expenditures are too high and wants to cut $500,000 from promotional spending. Management estimates it will lose 10,000 units in sales if it does. If gross profit is $40 per unit, what is the expected profit (loss)?
A. $100,000 profit
B. ($100,000) loss
C. $400,000 profit
D. ($400,000) loss
E. $500,000 profit
F. ($500,000) loss
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