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Purple Cow operates a chain of drive-ins selling primarily ice cream products. The following information is taken from the records of a typical drive- in

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Purple Cow operates a chain of drive-ins selling primarily ice cream products. The following information is taken from the records of a typical drive- in now operated by the company. Based on these data, the monthly break-even sales volume is determined as follows; 2. To increase operating income, the company is considering the following two alternatives: a. Reduce the selling price by an average of $2.00 per gallon. This action is expected to increase the number of gallons sold by 20 percent. (Under this plan, the manager would be paid their salary without a bonus.) b. Spend $3,000 per month on advertising without any change in selling price. This action is expected to increase the number of gallons sold by 10 percent. (Under this plan, the manager would be paid their salary without a bonus). 3. Draft a memo to management indicating your recommendation with respect to these alternative marketing strategies. The memo should include supporting evidence for your recommendations. Also, compare the possible strategies to what the company is currently doing

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