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Sales mix Pet Palace provides two types of services to dog owners: grooming and training. All company personnel can perform each service equally well. To

Sales mix
Pet Palace provides two types of services to dog owners: grooming and training. All company personnel can perform each service equally well. To expand sales and market share, Pet Palac
manager, Jim Jones, relies heavily on radio and billboard advertising, but next year's advertising budget is expected to be very limited. Information on projected operations for next year
follows.
a. What is Pet Palace's projected pre-tax profit (or loss) for next year? $
b. If $1 spent on advertising could increase grooming revenue by $20 or training revenue by $20, on which service should the advertising dollar be spent?
c. If $1 spent on advertising could increase either grooming billable time or training billable time by one hour, on which service should the advertising dollar be spent?
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