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Suppose Emma anticipates selling 40 units of the GMAT Success package at the fair. Exhibit 3-3 indicates that Emma's operating income will be $1,200. Emma
Suppose Emma anticipates selling 40 units of the GMAT Success package at the fair. Exhibit 3-3 indicates that Emma's operating income will be $1,200. Emma is considering advertising the product and its features in the fair brochure. The advertisement will be a fixed cost of $500. Emma thinks that advertising will increase sales by 10% to 44 packages, Should Emma advertise? The following table presents the CVP analysis. Suppose Emma anticipates selling 40 units of the GMAT Success package at the fair. Exhibit 3-3 indicates that Emma's operating income will be $1,200. Emma is considering advertising the product and its features in the fair brochure. The advertisement will be a fixed cost of $500. Emma thinks that advertising will increase sales by 10% to 44 packages, Should Emma advertise? The following table presents the CVP analysis
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