Question
TJ Company produces and sells four flavors of jelly: grape, strawberry, peach, and apricot. Information about these products for the most recent year is provided
TJ Company produces and sells four flavors of jelly: grape, strawberry, peach, and apricot. Information about these products for the most recent year is provided below: Grape Strawberry selling price per jar $26 $57 variable costs per jar $ 5 $31 number of jars sold 15,000 19,000 Peach Apricot selling price per jar $15 $18 variable costs per jar $ 8 $ 6 number of jars sold 13,000 30,000 The fixed costs in the most recent year were $756,000. TJ Company is considering investing in an advertising campaign that will double the sales volume of grape jelly. TJ wants to increase next year's profits by 25% over the most recent year's profits. Assume the sales of apricot jelly are expected to decrease by 30% as some customers who are currently buying apricot jelly will switch to grape jelly. The sales of strawberry and peach jelly will be unchanged. Calculate the maximum amount that can be spent on the advertising campaign.
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