The level of bad debts concerns the Judd's Reproductions controller. If Judd's insists on cash  payments from exporters who would be given the cash discount, the sales staff expects that  total sales to exporters in 2020 will fall by 5% (sales in 2019 will not be affected). Based on  the effect of this change on profitability, is it desirable? (Round sales forecasts to the  nearest unit.) Ignore the changes described in part (b) and return to the data in the original example. The  sales staff is considering increasing the advertising budget from $600,000 to $900,000 and  cutting prices by 5% beginning on January 1, 2020. This should increase sales by 30% in  2020. Based on the effect of this change on profitability, is it desirable? (Round sales  forecasts to the nearest unit.) 

Unit production and sales Chairs Tables Cabinets Credit Card; 35% of Sales Exporter: 40% of Sales Bad Debts: 3% of export sales Oct. Cash discount 5% of case sales 900 Credit Card fees: 396 175 90 Nov. Sales Forecast 2012 975 188 102 Dec. 201 Jan. 950 1,326 1,548 95 260 Feb. 142 308 156 Mar. 1,533 316 155 Apr. 1,554 325 164 May 1,560 328 159 June 1,565 332 163 July $7,529 $8,654 $8,678 $8,963 $8,912 1.552 1,559 315 Aug. 160 329 157 Sept. 1,589 316 165 Oct. 1,585 322 164 Nov. 1,569 317 Total Revenue $499,500 $547,800 $541,900 $717,060 $824,220 $826,500 $853,575 $848,730 $859,940 $837,805 $845,975 5854,240 $856,900 $849,585 $843,410 164 Cash Sales: 25% $124,875 $136,950 $135,475 $179,265 $206,055 $206,625 $213,394 $212,183 $214,985 $209,451 $211,494 $213,560 $214,225 $212,396 $210,853 of Revenue Dec. 1,550 332 155 $174,825 $191,730 $189,665 $250,971 $288,477 $289,275 $298,751 $297,056 $300,979 $293,232 $296,091 $298,984 $299,915 $297,355 $295,194 $199,800 $219,120 $216,760 $286,824 $329,688 $330,600 $341,430 $339,492 $343,976 $335,122 $338,390 $341,696 $342,760 $339,834 $337,364 $9,029 $8,797 $8,883 $8,970 $8,997 $8,921 $8,605 $9,891 $9,918 $10,243 $10,185 $10,319 $10,054 $10,152 $10,251 $10,251 $10,283 $10,195 $10,283 $10,195 $10,121 $8,963 $10,303 $10,331 $10,670 $10,609 $10,749 $10,473 $10,575 $10,678 $10,711 $10,620 $10,543 $8,856