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hi , please help with question 1 . 3 Q . 1 . 3 Teddy Co . presents the following information relating to normal (

hi, please help with question 1.3
Q.1.3 Teddy Co. presents the following information relating to normal (budgeted)
information:
(12)
Value
Weekly sales volume (units)
4000
Selling price per unit
R20
Marginal cost ratio
35%
Teddy Co. wishes to boost the sales of its product and predicts that by applying a promotional discount of 22% on their selling price and incurring an additional fixed cost of R350000, unit sales will be five times higher than normal sales. Variable costs remain unchanged.
Promotional data
Value
Selling price discount
22%
Sales multiplier
5
Additional fixed cost
R350000
Promotional period (weeks)
6
Required:
Calculate the incremental profit/ loss that may arise from the promotion.
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