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The sales manager made the following proposal to increase profitability: Decrease the selling price by R40 per unit and increase advertising expense by R24 000

The sales manager made the following proposal to increase profitability:

Decrease the selling price by R40 per unit and increase advertising expense by R24 000 with the expectation that sales volume will increase by 10%.

Should the sales manager's proposal be accepted? Motivate your answer with the relevant calculations.

do we need to show profit and loss or the difference in units?

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