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To increase operating income, the company is considering the following two alternatives: Reduce the selling price by an average of $2.10 per gallon. This action
To increase operating income, the company is considering the following two alternatives: Reduce the selling price by an average of $2.10 per gallon. This action is expected to increase the number of gallons sold by 20 percent. (Under this plan, the manager would be paid their salary without a bonus.) Spend $3,400 per month on advertising without any change in selling price. This action is expected to increase the number of gallons sold by 10 percent. (Under this plan, the manager would be paid their salary without a bonus).
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