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From: Subject: Alex, Marketing Incentive Financing We are thinking of offering incentive financing to all customers. We estimate our profit margin will decrease from 10
From: Subject: Alex, Marketing Incentive Financing We are thinking of offering incentive financing to all customers. We estimate our profit margin will decrease from 10 to 8 percent of total revenue, but total revenue will increase by 25 percent. So, if we do this, what will happen to our total profit? Reminder: Total Profit = Profit Margin x Total Revenue Total profit will go up Total profit will remain the same Total profit will go down There is not enough information
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