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Netco's sales budget for the coming year is as follows. Items 1 and 3 are different models of the same product. Item 2 is a
Netco's sales budget for the coming year is as follows. Items 1 and 3 are different models of the same product. Item 2 is a complement to Item 1. Past experience indicates that the sales volume of Item 2 relative to the sales volume of Item 1 is fairly constant. Netco is considering a 10% price increase for the coming year for Item 1 , which will cause sales of Item 1 to decline by 20% while simultaneously causing sales of Item 3 to increase by 5%. If Netco institutes the price increase for Item 1, total sales revenue will decrease by Select one: a. $750,000 b. $550,000 c. $850,000X d. $1,050,000
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