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Strike Services cc produces a product that sells for R55.00 per unit. Variable costs to manufacture and sell the unit amount to R42.00 per unit.

Strike Services cc produces a product that sells for R55.00 per unit. Variable costs to manufacture and sell the unit amount to R42.00 per unit. Fixed costs and expenses are going to amount to R46,000 per period.The sales manager believes that sales revenue can be increased by R65,000 if he is given additional funds for a sales promotion. What is the maximum amount that he may be allowed to spend so that the company does not lose money on the promotion?

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