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? Question 2 [ 3 0 ?Marks ] Emma Frost is considering selling GMAT Success, a test prep book and software package for the business
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Emma Frost is considering selling GMAT Success, a test prep book and software package for the business school admission test, at a college fair in Cape Town. Emma knows she can purchase this package from a wholesaler at R ?per package. She also knows that she must pay R ?to the organisers for the booth rental at the fair. Emma anticipates selling each package for R ?Suppose Emma anticipates selling ?units at the fair. Emma is considering placing an advertisement describing the product and its features in the fair brochure. The advertisement will have a fixed cost of R ?Emma thinks that advertising will increase sales by ?to ?packages. Should Emma advertise? Motivate your answer.
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tabletable ?PackagesSold withNo Advertisingtable ?PackagesSold withAdvertisingDifferenceSales ;Fixed costs,,,Profit
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