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The sales manager feels that by increase in $10,000 fixed cost i.e, advertising budget, the sale will increase by $30,000 to a total 520 units.

The sales manager feels that by increase in $10,000 fixed cost i.e, advertising budget, the sale will increase by $30,000 to a total 520 units. Keeping in mind the current situation of COVID-19 and after doing CVP analysis, should finance department increase the advertising budget? In your opinion what is the alternative strategy if sales not increase?

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