(b) Mr Raj is aware that he has the opportunity to spend RM100,000 on advertising with the prospect of increasing sales by RM300,000. Should Mr Raj spend additional for advertising? (4 marks)

(c) Mr Raj has just received an order from Syarikat Electronic Che Wan, Kuala Muda for an additional 80,000 units of DVD Player at a price of RM750 each. Advice Mr Kumar whether to accept the offer. (4 marks)