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The following table shows the current data for camera brand Sales-$150000 -$3000/unit Variable expense-$40000- $800/unit Fixed expense-$15000 - $2200/unit Option A:increase advertising cost of cameras

The following table shows the current data for camera brand

  1. Sales-$150000 -$3000/unit
  2. Variable expense-$40000- $800/unit
  3. Fixed expense-$15000 - $2200/unit
  • Option A:increase advertising cost of cameras by $1000 which will increase monthly sales of camera by 20units.
  • Option B: decrease selling price of camera from $3000 per units to $2500per unit which will increase monthly sales of cameras by 30 units question: as a sensible manager who wants to maximize the profits for camera brand which one of the two options you will choose .you must show all the working /calculations that help you to make your decision (hint:use CVP technique)

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