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Using the situation described in the previous problem, assume that we will need to advertise the availability of the new product and we expect this
Using the situation described in the previous problem, assume that we will need to advertise the availability of the new product and we expect this cost to increase our annual advertising budget from presently $60,000 to new level of $100,000 to include the advertising for the new product. Is this a relevant cost, and if so, how much new or additional advertising expense would you assign to the new product and would this be a positive or negative cash flow?
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