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?Question 2 Emma Frost is considering selling GMAT Success, a test prep book and software package for the business school admission test, at a college
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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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