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Paul was a marketing major in college. He believes that sales volume can be increased only by intensive advertising and promotional campaigns. He therefore proposed
Paul was a marketing major in college. He believes that sales volume can be increased only by intensive advertising and promotional campaigns. He therefore proposed the following plan as an alternative to Peri's: ?increase unit variable selling expenses to $ ?lower the unit selling price by $ ?and ?increase fixed selling expenses by $ ?Paul quoted an old marketing research report that said that sales volume would increase by ?if these changes were made.
Compute net income under Paul's proposal and the breakeven point in sales dollars. Round intermediate calculations to ?decimal places, eg ?and fnal answers to ?decimal places, eg
Amounts
Net income
$
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