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In the lecture, based on the beginning balance sheet of our shoe company, we examined the effects on revenue, profits and ROE of a 10%
In the lecture, based on the beginning balance sheet of our shoe company, we examined the effects on revenue, profits and ROE of a 10% increase in quantity of shoes sold. Now analyze the effects of a 10% increase in price per pair sold (the number of pairs sold is unchanged at 200). Which is better an increase in sales or the same percentage increase in price? Why?
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